From April 30th to May 3th, 2018, the 49th OTC Oil and Gas Exhibition was held at the NRG Park Exhibition Center in Houston, USA. This is the 50th edition of the US OTC Oil and Gas Exhibition since its inception in 1969. As one of the earliest companies in China to enter the offshore industry, CIMC Raffles has participated in 13 editions of the US OTC since 2005. The CIMC Raffles sent an exhibition team consisting of the marketing department, R&D department, purchasing department, module department and other departments. The group's CIMC Leasing, Haigong Holdings, Sweden’s BT and Norway’s BE were also present.
At the event, CIMC Raffles exhibited three main product models: the BT5000 economical semi-submersible drilling platform, the GM4D harsh sea area semi-submersible drilling platform and the Petrobras P71 FPSO, and focused on the solution of CIMC Raffles in the following four major areas:
1. Advantages of harsh sea areas and ultra-deep water drilling equipment. With emphasis on the hotspots of harsh seas market, the belief "North Sea, We are ready!" was proclaimed. The GM4D platform’s ice-class operational capability was showcased and the delivery times of the three platforms were announced to the world. On the fundamental level, the economical operational features of the semi-submersible drilling platform BT5000 jointly built by CIMC Raffles and BT was also espoused. The image of the gas ignition of the world's most advanced "Blue Whale No. 1" drilling platform successfully carrying out the test of harvesting gas hydrates in the South China Sea was also proudly displayed.
2. Production platform and module capabilities. The capabilities of CIMC Raffles' FPSO, self-elevating production platform MOPU, cylindrical FPSO, FSO, and module building capabilities were exhibited.
3. Natural gas solutions. The offshore natural gas power generation concept with the FPP and supporting FSRU developed by CIMC Raffles were displayed with the in-principle certification of ABS and BV class. For high density gas fields, the Gas plant platform with gas compression and reinjection capabilities was demonstrated.
4. China-Europe interactive research and development model. This focuses on the rich R&D and design capabilities of the CIMC Offshore Research Institute in enriching the offshore ship with the Swedish BT company specializing in various drilling platforms, and the Norwegian BE specializing in FPSO.
On the first day of the exhibition, many mainstream customers (Petrobras, COOEC, KBR, Technip-FMC, COSL, CPOE, Transocean, Ocean Rig, Maersk Drilling, Dockwise, SNC-Lavalin, Boskalis). Business (NOV, Thrustmaster, MHWirth, Huisman), design companies (MOSS, F&G, Gusto MSC,), classification societies (CCS, ABS, DNV), and upstream dynamics and consulting companies (Upstream, Clarkson) were visited. In-depth exchanges were made on the current offshore market situation and future cooperation opportunities. This resulted in some potential projects, equipment supplier cooperation and external expert support.
The atmosphere on the first day of the exhibition was visibly different from the gloomy situation of the offshore industry experienced in the past two years. The trend of industry recovery can be clearly felt in OTC 2018, not only from the interactive communication, but also from various data and projects available. During OTC 2018, the international oil price has risen to nearly $75/barrel, and it is expected to reach a stable level of more than $80 in 2020. In 2018, oil and gas companies will increase E&P exploration production expenditures and increase exploration activity. The utilization rate of drilling rigs, daily charter rates, and transaction prices of second-hand platforms have been raised slightly compared with last year. The recovery of the harsh sea area has also been repeatedly mentioned. In terms of production platform, there will be more orders in 2018 than in 2017. In addition to the three production platform projects that have been signed last year, it is expected that there will be about 10 FPSO projects in 2018, and Petrobras is the largest customer with five FPSO projects, including Buzios 5 and Marlin, which are expected to take effect this year.
In addition to the obvious trend of market recovery, cost, efficiency and innovation have also been repeatedly emphasized. Although the oil price has risen and the cash flow situations of major international and national oil companies has greatly improved, some even returning to the level of the high oil price level in 2014, the cost factor is still mentioned and considered by various oils, including Chevron, Total, and BP. Emphasis is placed on the focus on cost factors, with the belief that standardization and technological innovation being key to driving cost reductions and efficiency gains. In addition, more and more oil companies have mentioned Fast-Track Development, which accelerates capital turnover to achieve better returns, which signals the need of deeper and closer cooperation within the industry.
The capability of CIMC Raffles' offshore oil and gas industry supply chain in providing solutions has attracted the both the attention and recognition by customers. The theme of drilling and production platform was also the focus of attention of all parties.
