China is looking for workers with engineering or technical skills or otherwise able to provide specialty energy services to a country experiencing explosive economic growth and zealously seeking the energy to fuel it.
The Chinese government in 1982 adopted international codes and standards and enabled foreign enterprises to collaborate in oil and gas exploitation. Since then, these companies have contributed to complex projects, specialty work, onshore fabrication, and offshore installations.
In the 1980s, there were few qualified Chinese engineering, procurement, and construction contractors. They came from Japan-“even welders for welding jackets and platforms,” said CNOOC Engineering Co. Pres. Xizhao Jiang, who was a guest speaker last May at the Offshore Technology Conference in Houston.
In 1990, CNOOC exploration moved into the South China Sea. Equipment became more sophisticated with the first heavy jacket substructure. CNOOC formed a consortium with international companies for projects after 1990.
From 2000 CNOOC introduced more international quality in projects execution. It built 90 platforms and 2,500 km of pipelines and developed engineering and procurement capability, accomplishing most of the projects itself.
China’s capabilities have advanced rapidly, with more engineering, procurement, and construction, onshore fabrication, testing, commissioning, loadout, and off and onshore transportation capabilities.
Demand forecast
China’s gross domestic product has increased by more than 10%/year since 2002. In 2006 GDP was $2.68 trillion, Xizhao said, about one fifth that of the US.
China is the world’s second largest oil consumer, using 7.5 million b/d in 2005. This consumption will be the driver for finding other methods and types of energy.
China is constructing LNG terminals and developing offshore wind, tide, solar, and other clean energy initiatives.
The government supports increased gas use-now only 3% of total energy consumption-and intends to make LNG imports a major goal. Ten LNG terminals are planned.
Five fabrication yards are working along China’s coast, and a heavy derrick laybarge under construction will enable pipelaying in water to 3,000 m.
Oil and gas materials and equipment supplies are being produced locally, with supplies from international manufacturers and vendors providing the heavy or specialty equipment. Steel production in China has almost doubled in the last 5 years, making available more steel for offshore requirements.
Yet China remains in need of many technologies.
Opportunities
Although China is beginning to fill its own general needs, a shortage of skilled talent in specialty disciplines and advanced technologies will present opportunities.
A greater emphasis on the environment and disaster weather scenarios will make project risk control more important.
Currently offshore activities just meet basic requirements, but stricter industry codes and standards will be accepted, requiring more training.
Managing and controlling megaprojects will require a new energy regimen needing more international cooperation.
China will accelerate field development and construction facilities related to LNG and LPG. Supplies of manpower, materials, and fabrication are needed.
Shipbuilding remains one of the most active industries in the Chinese economy.
The oil industry in China will need to build more platforms and other offshore facilities, repair some existing structures and decommission others, and move operations into water as deep as 1,500 m.
CNOOC each year brings five or six offshore projects on stream and expects to continue doing so for 5-10 years.
It will invest $1.3 billion in engineering and construction in the next 4-5 years, with about 10% of that going to foreign contractors.
Training in more-advanced disciplines will have to be from experts overseas, Xizhao said, for the complex projects, specialty work, onshore fabrication, and offshore installations.
Many opportunities will exist for international companies in next 10-20 years as China’s offshore industry matures.
