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Engineering & Technical Service

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 risk control”, highlighted technology innovation, and enhanced equipment capacity, so that technical level was significantly improved, important breakthrough was achieved in operation capacity, international competitiveness and influence was enhanced in 2016.

Oilfield Services

China Oilfield Services Limited (COSL) has over fifty years 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 Asia-Pacific regions, COSL can provide sole business operation service as well as integrated packaged turnkey operation service. The business is expanded to six major areas of Southeast Asia, Middle East, America, Europe, Africa and Far East, covering 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 service providers in the world.

Deepwater operation capacity continued to be improved steadily. COSL built the whole set of deepwater equipment group and studied the whole technological system for deepwater exploration and development, trying to build the first class deepwater operation team. At present, it possesses the all-around exploration, development and production service ability from shallow water to deep water. It is now managing and operating 44 drilling platforms, among which 7 are deepwater semi-submersible platforms, forming a complete deepwater echelon operation of 750, 1,500 and 3,000 meters.

The brand reputation and client recognition in global market are further increased. In Southeast Asia, it won the drilling contract exclusively endowed by SAKA and the Indonesia Tropic integration technology service project. In Middle East, COSL won the bid for two-to three-year long-term operation contract of two platforms in IOEC and the drilling service contract from Oman DNO and entered directional well market for the first time. In America, it won the offshore drilling machine and shipping service contract from Pan Am, which would build a solid foundation for the integration contracting in the Gulf of Mexico. In Far East, four major operations of geophysical prospecting, drilling, oil technology and ship entered the marked comprehensively for the first time.

The serialization and industrialization of independent research technologies and products were accelerated. In drilling and logging, COSL has realized the operation ability of well logging during drilling and direction drilling technological equipment for two major sizes of wells 12-1/4 inches and 8-1/2 inches. In drilling & completion fluids and well cementing, COSL successfully conducted independent research on four kinds of deepwater drilling & completion fluids technologies and five kinds of well cementing technologies, and it developed 30 kinds of core products, which steadily improved the operation ability in high temperature, high pressure and ultra-deepwater environment. In terms of completion tools, it self-developed 42 kinds of top completing tools and 62 kinds of bottom sand control tools. Meanwhile, the drive-pipe well tool series of 9-5/8 inches and 7 inches were further improved.

In 2016, it was selected into “Top 500 Innovation Indexes of China A-Share Listed Companies” and awarded with “Violet Gold Innovation Award 2016”. In addition, it was chosen to be the 2016 “Best Enterprise Management Team in Asia” by world-famous financial magazine Institutional Investor and awarded the “Best Investor Relationship Listed Company” prize, and it is included into the component stocks of “Hang Seng Sustainable Development Enterprise Index” for five years successively.

Offshore Oil Engineering Service

Centered on the project construction of offshore oil and natural gas, LNG and others, targeted with “practical and delicate implementation of the whole project process”, cored with cost reduction and efficiency enhancement, as well as service upgrade, CNOOC Offshore Oil Engineering Co., Ltd. (COOEC) focuses on building the leading general contracting capacity of offshore oil project EPCI (engineering, procurement, construction and installation) within the Asia-Pacific region.

In 2016, the workload of COOEC decreased rapidly, but the international project workload took almost 60%. 24 medium and large-scale construction projects were implemented through the year, 126,000 structure tons of steel was processed, 8,900 of ship days were put into operation, 80 project milestones were totally completed and the engineering machinery completion were brought forward 155 days cumulatively.

The operation ability and efficiency kept increasing. In 2016, the offshore projects were operated with high efficiency and stability, and the “Weizhou 6-9/10” and other 8 projects were completed. “Yacheng 13-1” Project realized permanent pressure tapping operation with the application of domestic tapping machine for the first time, the gas pipeline realized recovery production 36 days in advance. The Chengbei upgrading and reform project completed class-A offshore major operation risk management and control work of CNOOC, which created the new record in remold workload and difficulty.

The international projects achieved notable results. In 2016, COOEC operated 7 international projects including Yamal Project in Russia at the same time. The Yamal Project made high-end “Made in China” products enter the Arctic Pole for the first time, which created the great performance of no accidents for 38 million working hours. The offshore platform of Burmese Zawtika 1B Project realized operation in advance and won high reputation from foreign owners. Meanwhile, the Brazilian FPSO Project was the first Petrobras project directly undertaken by COOEC, which created the new record of 11,800 sea miles of towing distance.

The market expansion made new breakthroughs. In 2016, international market development of COOEC realized breakthrough with 179 signed/negotiated construction income contracts in total, among which, Qatar NAF EPCI Project was the first EPCI general contracting project independently undertaken in the whole Middle East market, Shell SDA Project was the first EU project executed in Qingdao.

Technology-driven effect continued to be played. In 2016, 75 major scientific research projects of COOEC were carried out through the year, 132 pieces of patents and 19 software copyright registration permits were authorized. Over 40 technology innovation results including pressure tapping sealing technology were applied in production, which brought great economic benefit, and 2 scientific and technological platforms were preliminarily built, and the “Ocean Engineering Technology Center” was recognized as the national enterprise technology center, and the national level welding technique research and development platform was built smoothly.

In 2016, the development of COOEC was widely accepted by the capital market, and COOEC was selected as “Top 100 Competitive Listed Companies of China” by Tencent Finance and awarded the “Pearl of Listed Company” prize.

Professional Technical Services

CNOOC EnerTech is dedicated in building an internationally competitive energy technology service company with coordinated development of diversified industries, which is integrated with technological research and development, product manufacturing and professional technology service and oriented by energy industry service. 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 technology services, FPSO production technology service, energy logistics service and HSE and energy saving, which make it an innovative enterprise with sustainable development ability and one-stop service.

Withstood operation pressure and displayed new strength. In 2016, CNOOC EnerTech tried its best for promoting cost reduction and efficiency enhancement and completed its annual operation goal. Its Oil Extraction Company operated various kinds of offshore facilities with safety and high efficiency and played the mainstay effect in oilfield production, meanwhile, “Hai Yang Shi You 301” made foreign breakthrough and the operation in Indonesia gained over RMB 100 million of revenue, and the small scale FRSU market window was opened in Indonesia. The Safety and Environmental Protection Company boosted the deep cooperation with the domestic and foreign famous enterprises. The third-party safety service model for government purchasing was popularized. Through integration of production increasing and general contracting, its Engineering Technology Company made breakthroughs in emerging market. Its Equipment Technology Company accelerated the strategic transformation of equipment operation and maintenance industry, and the storage tank business entered the middle and downstream market of refining. The research institutes in Tianjin and Changzhou solidified the old market and won the new market with technology transformation, keeping over RMB 100 million of earnings. Relying on platinum network technological advantage, CNOOC Taiyuan Precious Metals Limited extended its industrial chain, developed value-adding business and realized rising against the slowdown market.

Management innovation discovery showed its new drives. The deep blue innovation plan and oil circle project of the Engineering Technology Company, the sparkle plan of the Safety and Environment Protection Company, entrepreneurship competition of the Information and Technology Company and other plans played great demonstrative effect, which further activated the motivation for the staff to start new business.

The effect of scientific and technological result was remarkable. Through major water treatment special project, it actively promoted the transformation from asset-driven to technology-driven. The Equipment Technology Company independently developed 8-inch leakage flux inner inspector and inner inspection data processing software, with an advanced international level. The engineering technology companies successfully developed “integrated window sidetrack drilling tool”, which filled the shortage of China offshore oil technology and is of great prospect. The Tianjin Chemical Research & Design Institute Co., Ltd. independently developed the whole set of technology for aromatic hydrocarbon production with inferior diesel, which has significant influence on oil refining.

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