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Engineering & Technical Service

The engineering & technical services sector is the solid foundation for the sustainable development of the oil & gas business. The Company adhered to “cost reduction and efficiency enhancement through safe, quality and highly efficient operation, overall promotion of management and strengthening risk control”, highlighted technology innovation and enhanced equipment capacity, so that the level of engineering technology was steadily improved, critical breakthrough was achieved in operation capacity enhancement, international competitiveness and influence were continuously enhanced in 2017.

Oilfield Services

China Oilfield Services Limited (COSL) has decades of experience in offshore oil and natural gas exploration, development and production, with its business including geophysical prospecting, well drilling, oilfield technology and ship. With the most powerful offshore oil service equipment group in the Asia-Pacific region, COSL can provide sole business operation services as well as integrated packaged turnkey operation services. The business expands to six major areas including the Southeast Asia, the Middle East, America, Europe, Africa and the Far East and covers over 30 countries and regions in the world. The equipment capacity continues to be intensified, the technological results keep emerging and the internationalized operation level is greatly improved. COSL has become one of the largest comprehensive offshore oilfield services providers in the world.

COSL vigorously develops domestic and foreign markets. In the domestic market, it strives to provide a one-stop comprehensive solution to help oil companies regain low cost advantages. A breakthrough was made in the market for cooperative blocks as completing the 3D collection and processing project of Eni (China), winning the bidding for the 3D collection and processing project of Australian Sky Energy Company and the Pearl River Mouth exploration project and the tidal project of SK. COSL introduced the major achievements in the integrated service advantage and key technologies to overseas customers with the use of the Workshop marketing model. Overseas business grew as 4 new markets such as Papua New Guinea, Argentina, Cameroon and Kuwait were developed and 24 customers including Kangean, WNEL, TWINZA, Fieldwood, LUNDIN and others were newly added.

Reform and innovation speed up technological progress. The construction of a joint laboratory (North America) for oilfield services technology research with Oliden Technology LLC accelerated the serialization and industrialization of the logging technology and equipment of COSL. The connection of COSL Welleader with Halliburton FEWD system and the mutual connection with Bake Hughes accelerated the industrialization of COSL’s self-developed Drilog LWD system and Welleader rotary steering drilling system and equipment and improved operational capability. The MoU on machining with Foshan Nanhai Zhongnan Machinery Co., Ltd. was reached, which could help COSL break through the bottleneck of machining capacity in the “trusteeship” mode.

COSL further improved the layout of serialization and industrialization for technical products. On the basis of the serial list of technical products, COSL carried out for the first time a special planning of industrialization, which better analysed the market demand and technological environment of all technology series, clarified the industrialization results of key nodes and matched the deployment of each professional line. COSL organized technical experts to examine the industrialization incentive projects for first 15 technical products and concluded that 7 projects had been industrialized and 4 projects had achieved the goal of industrialization. In addition, 76 LWD instruments and supporting equipment and 70 rotary steering instruments and supporting equipment were made. Various research work related to the industrialization of self-developed complete set of geophysical equipment was accelerated as well as the self-developed foamed and fixed cable completed the sea test by hitching to the vessel 718, both indicates that COSL has made substantial progress in the key equipment technology of the “complete equipment for seismic acquisition based on foamed and fixed cable”.

Offshore Oil Engineering Service

COOEC concentrates on the engineering construction of offshore oil and gas and LNG, sets “cost reduction, efficiency and service improvement” as the principle and “working steadily and meticulously in the whole process of project” as the goal, makes efforts to build the leading general contracting capacity of offshore oil engineering EPCI (engineering, procurement, construction, installation) in the Asia-Pacific region.

In 2017, the share of international projects in all COOEC’s projects was at a historical peak. 25 large- and medium size construction projects were implemented throughout the year, 117,000 tons of steel structure were processed, 7,100 ship days were put into operation, 86 project milestones were completed and the engineering machinery completion was brought forward 200 days cumulatively.

The operation ability and efficiency kept increasing. In 2017, the offshore projects were operated with high efficiency and stability. 7 projects were completed, including Chengbei Oilfield equipment and facilities upgrading and reform project and Wenchang capacity release project. In Yamal project it completed 11 modules of sealing of roof structure in a month and created the new record of the Company’s large-scale hoisting. The float of upper platform of Wenchang 9-2/9-3 for the first time achieved complete domestic design, 2 new domestically-made achievements were applied for the first time.

The international projects got remarkable results. In 2017, COOEC synchronously ran 8 international projects such as Yamal project and Petrobras’ FPSO. Yamal project is the largest overseas order project in the history of COOEC, including 36 core process modules, weighed totally 180,000 tons. Petrobras’ FPSO P67/P70 project, was highly praised by the Brazilian owner.

The market expansion made new breakthroughs in 2017, as COOEC made great efforts in developing both international and domestic market. It won a number of large-scale engineering projects such as Dongfang 13-2 gas field group development engineering project, Penglai 19-3 oilfield 1/3/8/9 area comprehensive adjustment project. An accumulative total of 225 contracts were signed or negotiated.

LNG-related new business achieved a milestone in the history of COOEC. In 2017, COOEC gained a number of qualifications for participating in the bidding of all the large LNG projects in China. It also developed the business scope from “building storage tank” to “building receiving terminal + storage tank” EPC, which meant a critical breakthrough of operation from “liquid gas” to “gas-to-liquid”.

The development of COOEC was further accepted by the market. In 2017, COOEC for the first time won the PMI (China) Annual Award of Project Management. Yamal project and Shell SDA project were highly appraised by the owners.

Energy Technical Services

CNOOC EnerTech is dedicated in building an internationally competitive energy technology service company, which places energy services at the core and develops diversified industries in a coordinated way, with the integration of technological research and development, manufacturing and professional technical service. CNOOC EnerTech highlights specialization in its development guidelines and creates the “technology + service + product” business model through constant resource integration, organization integration, industrial integration and structural optimization, in order to achieve service supports production, product drives service and technology advances industry. CNOOC EnerTech aims to be an innovative enterprise with one-stop service and sustainable development ability. Its business covers most links from upstream to downstream of the oil and gas industrial chain and is formed with four core business segments including energy technical services, FPSO production technical services, energy logistics services and HSE and energy saving services.

Energy technical services go back on the fast growth track. CNOOC EnerTech takes providing energy technical service as the core business. It provides oil companies with all technical services including engineering technology, equipment operation and maintenance, pipeline technology and information services. On the basis of the oil and gas industry, CNOOC EnerTech continues to improve the professional technical level and the quality of service as well as enhance market development. In 2017, the income from energy technical services increased by 23.73% compared with last year.

FPSO production technical services make stable profit and cash flow. CNOOC EnerTech is the only supplier in China’s offshore area that provides comprehensive and integrated FPSO production technology services for oil and gas production enterprises. By the end of 2017, CNOOC EnerTech had 8 FPSO, ranking third in Asia and sixth in the world among FPSO operators. In 2017, the calendar day’s utilization rate of FPSO was 100%.

In 2017, the supply of energy logistics services by CNOOC EnerTech increased by 27.34% compared with last year. CNOOC EnerTech focuses on providing support services for production and mid- and downstream in the offshore oil industry, providing logistics support for offshore oil and gas field exploitations through marine supplies and catering services, and assisting oil and gas companies to distribute all kinds of oil and gas products to wholesalers and retailers through logistics and sales services.

Safety, environmental protection and energy saving business keep stable development. In order to achieve long-term sustainable development and make full use of its advantages, CNOOC EnerTech has actively invested in business related to safety, environmental protection and energy saving and has already had the national certificate of environmental impact assessment for the national second grade construction project. CNOOC EnerTech is the first domestic professional service company of providing marine environmental protection that operates in accordance with international practices and standard and is qualified with level 2 oil spill response capability. It has 9 international advanced multi-functional oil spill environmental protection ships and oil spill drift software, which makes it the leading advantage in the field of oil spill response.

In 2017, CNOOC EnerTech actively developed the external market and the overseas market to further enhance the capacity of opening industries. It won the bidding for CBM integrated package EPC project of Guizhou Natural Gas Energy Investment and opened the local CBM market. TCDTO-1, the self-developed reformed oil non hydrofining catalyst, was successfully applied to projects in Yunnan Petrochemical, Ningxia Petrochemical and North Asphalt Fuel. The income from the external market in 2017 increased by 44.65% compared with last year. In the overseas market, CNOOC EnerTech won 3 major projects such as clearing tank, QHSE service and pipeline supply for Missan Oilfield, with clearing tank and pipeline supply business for the first time entering the overseas market. In 2017, the Russian business returned CNOOC EnerTech more than RMB 100 million, with a single order for color board coating close to RMB 30 million.

CNOOC EnerTech promotes the transformation of scientific research system by market-orientation. It strengthened the top level institutional arrangement and integrated the research and development platforms and technology centers of subsidiaries into 6 virtual institutes and establish an open and decision-making expert committee composed of internal and external experts. A number of core technologies at the company level were established in energy technology services, energy saving, environmental protection and digital logistics. A clear technical development goal and an implementation path were put forward.

CNOOC Annual Report 2017
Giving a full play to the leading role of technology innovation, the company has set up a technology innovatio......