China Oilfield Services

Last updated
China Oilfield Services Limited
中海油田服务股份有限公司
State-owned enterprise
Traded as (SEHK:  2883,SSE: 601808)
Industry Oil exploration and Oil drilling
Founded2001
Headquarters,
Area served
China
Key people
Fu Chengyu (Chairman)
Parent CNOOC
Website China Oilfield Services Limited

China Oilfield Services (COSL) is an oilfield services company. It is a majority owned subsidiary of Chinese state owned company CNOOC Group. [1] It also has a listed sister company in Hong Kong, CNOOC Limited.

Contents

China Oilfield Services usually purchases off shore vessels (OSVs) and operates them in Southeast Asia, the Middle East and Central Asia in off shore projects of CNOOC. It also operates in Indonesia, Malaysia and the Caspian Sea.

Overseas

COSL's overseas revenue surged 133% year on year in the first half of 2015 to 209.8 million yuan, driven by demand for its services in Indonesia, West Africa and the Middle East.

COSL had an office in Kuala Lumpur, Malaysia briefly in the early 2000s when it had its first western Vice President, Alan Good, a British born Oilman who helped launch the company internationally and pushed for further growth in the international sector.

COSL also maintains an office in Houston, TX as COSL America

Stock

Globally, the number of listed players in the oilfield services sector is just over 100, with a combined market capitalisation of about US$250 billion. The top five account for 40% of the industry's market capitalisation. The two largest companies in this sector are Schlumberger with a 2007 year-end market cap of US$117.6 billion and Halliburton with a 2007-year end market cap of US$33.4 billion.

According to Mr Chen, US firms tend to be the most expensive with enterprise values running two to three times book values, compared with one or less in Europe and Asia.

COSL claims a 95% share of China's market for offshore drilling services, 70% of the marine support and transportation market, 60% of the well survey services market and more than 50% of the seismic data collection market.

Globally, about 15% of oil companies' capital expenditure goes to exploration, 35% to field development and 50% to production.

COSL posted a 22.7% year-on-year rise in interim net profit to 555.9 million Yuan, ($115 million).


Acquisitions

On 23 September 2008, COSL acquired Norway's Awilco Offshore ASA (AWO) for 17.1 billion yuan (2.51 billion U.S. dollars), which is to be merged into COSL Drilling Europe AS, a wholly owned subsidiary of COSL. The deal received backing from the relevant government departments of Norway and Statoil, the state oil company of Norway. The deal increased the number of COSL's operating rigs to 22 from 15 and created the world's eighth largest rig fleet. [2]

Related Research Articles

Maybank Malaysian universal bank

Malayan Banking Berhad is a Malaysian universal bank, with key operating "home markets" of Malaysia, Singapore, Philippines and Indonesia. According to the Brand Finance report, Maybank is Malaysia's most valuable bank brand, the fifth top brand in Asean and ranked 83rd in the world’s most valuable bank brands.

Transocean offshore drilling contractor

Transocean Ltd. is the world's 8th largest offshore drilling contractor and is based in Vernier, Switzerland. The company has offices in 20 countries, including Switzerland, Canada, United States, Norway, Scotland, India, Brazil, Singapore, Indonesia and Malaysia.

YTL Corporation Malaysian infrastructure conglomerate

YTL Corporation Berhad is a Malaysian infrastructure conglomerate, founded in 1955 by Yeoh Tiong Lay, after whom the group is named. The company has grown from a small construction firm into a global infrastructure company generating over RM18 billion in revenues with over 70 percent coming from overseas.

CNOOC Limited (中国海洋石油有限公司) is China's largest producer of offshore crude oil and natural gas. It is a major subsidiary of China National Offshore Oil Corporation (CNOOC) and has been listed in Hong Kong SEHK: 883 and in New York NYSE: CEO since February 2001. It was admitted as a constituent stock of the Hang Seng Index in July 2001. In September 2013 it was listed on the Toronto Stock Exchange following its acquisition of Canadian oil and gas company Nexen Inc.

China National Petroleum Corporation Chinese state-owned oil and gas corporation

The China National Petroleum Corporation (CNPC) is a major national oil and gas corporation of China PR and one of the largest integrated energy groups in the world. Its headquarters are in Dongcheng District, Beijing. CNPC was ranked fourth in 2017 Fortune Global 500, a global ranking of the largest corporations by revenue.

Weatherford International Irish energy company

Weatherford International plc is an Irish-domiciled multinational oil and gas company which is one of the largest in the world.

Wah Seong Corporation Berhad is a public listed company on the Main Board of the Bursa Malaysia. It was founded in 1994, and has a market capitalization of about USD 300 million as of January 2007.

Awilco Offshore company

Awilco Offshore was a Norwegian drilling rig owner. In 2008 the company operated five jackup rigs and two semi-submersible accommodation rigs, with several others on order. Awilco was founded in 2005, headquartered in Oslo and was listed on the Oslo Stock Exchange. Operation of its rigs was done by the company Premium Drilling, owned by Awilco and Sinvest. The company was acquired by China Oilfield Services in 2008 and merged into its existing operations.

Great Eastern Life Life insurance company based in Singapore

Great Eastern Life Assurance is the largest life insurance company in Singapore and Malaysia. It is also the oldest insurance company in Malaysia.

Nabors Industries is a global oil and gas drilling company based in Houston, Texas. Nabors owns the largest land drilling fleet in the world with approximately 400 rigs in more than 20 countries. Company consists of the following business segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies.

Saipem Italian oil and gas contractor

Saipem S.p.A. is an Italian oil and gas industry contractor. It was a subsidiary of Italian energy company Eni, which owned approximately 30% of Saipem's shares until 2016. Saipem has been contracted for designing and constructing several pipelines, including Blue Stream, Greenstream, Nord Stream and South Stream.

Maersk Drilling

Maersk Drilling is a drilling rig operator based in Lyngby, Denmark. Established in 1972, the company is a Nasdaq CPH listed company with ticket name 'DRLCO'.

Petroleum industry in China

The impact of the petroleum industry in China has been increasing globally as China is the fourth-greatest oil producer in the world.

Essar Group Indian multinational conglomerate

Essar Group, founded by Shashi Ruia and Ravi Ruia, in 1969, as a construction company, later diversified into various core sectors, to become one of India's biggest multinational conglomerates.

China National Offshore Oil Corporation national oil company in China

China National Offshore Oil Corporation, or CNOOC Group, is one of the largest national oil companies in China. It is the third-largest national oil company in the People's Republic of China, after CNPC and China Petrochemical Corporation. The CNOOC Group focuses on the exploitation, exploration and development of crude oil and natural gas in offshore China, along with its subsidiary COOEC.

Dana Energy company

Dana Energy is a private oil and gas company headquartered in Tehran, Iran. It is an Exploration and Production (E&P) and Oilfield Services company operating in MENA. Dana Energy was formed in 2000, initially as an Oilfield Services company and ventured into field development in 2008. By the addition of petroleum products trading to its portfolio in 2013, Dana Energy has extended into the midstream sector.

Global Maritime is an independent offshore and engineering consultancy headquartered in Stavanger, Norway. The company provides engineering, marine and advisory services to the offshore and shipping industry. Originally operating primarily in the North Sea and the Gulf of Mexico, the company has over the recent years expanded its area of operations to include a number of emerging market locations. Global Maritime offers expertise from concept design, construction and operation, through to decommissioning of offshore developments.

Fu Chengyu entrepreneur and politician

Fu Chengyu is the Chairman of China Petroleum and Chemical Corp (Sinopec), the largest Asian refiner. He previously worked at the China National Offshore Oil Corporation (CNOOC), which foresaw a five-fold increase in its profits during his presence.

Sapura Energy Malaysian energy company

Sapura Energy Berhad is a Malaysian integrated oil and gas services company based in Seri Kembangan, Selangor. Sapura Energy trades in over 20 countries, such as China, Australia, United States of America, and those in Western Africa and the Middle East, employing approximately 13,000 people. Sapura Energy’s operations cover exploration, development, production, rejuvenation, decommissioning, and abandonment. The company was formed via a merger between SapuraCrest and Kencana in May 2012 and trades on the Main Market of Bursa Malaysia Securities Berhad. The company was renamed as Sapura Energy Berhad on March 24, 2017.

Wushi oil field

Wushi Oil Field is an oil and gas field located in the South China Sea Exclusive Economic Zone, 30 miles from Zhanjiang, off the southern coast of Guangdong, China.

References

  1. Wing-Gar Cheng (2006-12-19). "China Oilfield Considers Selling Shares in China". Bloomberg.
  2. news.xinhuanet.com