Global and China Marine (Offshore) Engineering Industry Report, 2011Research in ChinaDecember 5, 2011 182 Pages - SKU: RIC6728109 |
| Countries covered: China "The skyrocketing oil price during 2007-2008 sparked globally investment fever in marine engineering industry. However, from 2009 onwards, seeing globally economic recession and sluggish demand, many small and medium-sized marine engineering enterprises have taken a heavy toll on revenue in the wake of the nosedive of oil price. A case in point is DSIC Offshore whose revenue in H1 2011 was no more than RMB510 million comparing to the RMB1.185 billion in 2010. In the long run, marine engineering is still expected to see promising future as the oil price has mushroomed from the low level in 2010 to USD100 or more, and is likely to stay above USD 100 for a long time or even rise to USD 150 again. This can be attributed to the following reasons: Volatile situation in North Africa and the Middle East as well as the political turbulence in Yemen, Libya, Egypt and Syria; Iran issue is still up in the air. Thus, even if small-scale military conflict breaks out, a new round of oil crisis may stage a comeback in case of Iran blocking the Hormuz Strait; With the car ownership soaring in emerging economies such as China and India, the demand for oil is increasingly growing, which is enough to offset the shortfall in oil demand from developed economies. Especially for China, every year sees over 15 million new cars on road with striking oil consumption. And there are other contributing factors that boost the marine engineering market: With shallow water oil resources being exhausted, the development of deep water oil resources is accelerating; Aging drilling platform: the service life of 69% of Jackup drilling platforms exceeds 25 years, and as such, the service life of 42% of floating rig platforms is more than 30 years; Robust demand for natural gas and abundant marine natural gas resources; Brazil possesses the richest deep water oil resources, and is intensifying its exploitation of deep water oil resources. Presently, the development of marine engineering focuses on FPSO and Drillship. FPSO concentrates in West Africa, Mediterranean and South America while LNG-FPSO the Asian-Pacific region. LNG-FPSO is currently the most expensive vessel in the world. For example, the largest Nimitz class Aircraft Carrier of the United States costs USD3.5 billion; the world's first LNG-FPSO made by Samsung Heavy Industries for Shell costs as high as USD5 billion. Shell is scheduled to purchase 10 LNG-FPSOs within 15 years, so Samsung Heavy Industries is estimated to win orders worth USD50 billion. At present, many oil enterprises, including Shell, Petrobras, PTTEP, Conoco-Philips, Chevron, EXXON MOBIL and Norsk Statoil, have more favor for LNG FPSO. Marine engineering contractors and construction enterprises in Europe, South Korea and Japan established alliances to accelerate the R&D of LNG FPSO, such as France-based Technip teaming up with South Korea-based Samsung Heavy Industries, Norway-based Hoegh LNG with South Korea-based DSME, and Holland-based SBM Offshore with Germany-based Linde and Japan-based IHI. IHI holds the SPB storage technology, which is the most commonly used LNG storage mode of LNG carriers. Three leading shipbuilding enterprises in South Korea, including SHI, HHI and DSME, all purchased the patent of the technology. South Korea-based enterprises carve up the drillship market, with the market share of Samsung Heavy Industries surpassing 50%. Drillships, with the unit construction cost between USD500 million and USD700million, are especially applicable for deep sea. The direct customers of marine engineering are usually operators rather than oil tycoons. By the number of FPSOs in service, the FPSO operators, in sequence, include SBM OFFSHORE, BW OFFSHORE, MODEC, TEEKAY, BLUEWATER, BUMI ARMADA, OSX, MAERSK, PETROFAC, SAIPEM, MISC, FRED OLSEN, and RUBICON. By the number of platforms in operation, the rig platform operators are ranked as follows: Transocean, Noble, Ensco, Seadrill, Diamond, Rowan, Maersk, and Atwood. Before 2009, the operating margin of the drilling platform operators surpassed 50%, and the figure has declined to some extent in recent years but still higher than that of FPSO operators. South Korea-based Samsung Heavy Industries, Hyundai Heavy Industries and DSME mainly specialize in drillship and FPSO businesses, while Singapore-based Keppel and Sembcorp are mainly engaged in FPSO renovation and rig platform construction. In addition, STX OSV focuses on AHTS and PSV shipbuilding and, UAE-based Lamprell is involved in windcarrier vessel and drilling platform construction. Please Note: PDF E-mail from Publisher purchase option allows up to 10 users and does not allow printing or editing. This functionality will require a Global Site License. |
More China Maritime Reports
Research Report on Chinese Yacht Industry, 2012 by
China Research and Intelligence Co., Ltd.
Over a decade ago, in the consciousness of Chinese people, the yachts are the exclusive for the rich and it is out of reach for ...
Ship Repairing and Conversion in China by
IBISWorld
Ship Repairing and Conversion in China Businesses in the Ship Repairing and Conversion industry in China are primarily engaged in the conversion, dismantling, and repair of ...
Top Four Companies In Metal Ships Mfg. Industry In China by
Beijing Zeefer Consulting Ltd.
This report provides company profiles and financial data of the top 4 companies in metal ships mfg. industry in China. The content includes profit & ...
China Shipping Report Q2 2012 by
Business Monitor International
BMI View Following positive throughput figures across China's port sector for the first half of 2011, we forecast another year of growth for Chinese ports, ...
Dry Bulk Faces Bleak 2012, Chinese Slowdown Threatens A Sector Already In Troubled Waters by
Business Monitor International
BMI believes the outlook for the Dry Bulk Shipping sector remains bleak. The opening weeks of 2012 saw the Baltic Dry Index hit a three-year ...
See all reports like this >>
More China Reports
D&B Country RiskLine Report: China by
Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
Country Report China February 2011 by
Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...
Country Report China January 2011 by
Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...
D&B Country Report: China by
Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...
Wine - BRIC (Brazil, Russia, India, China) Industry Guide by
MarketLine
Datamonitor's Wine - BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, ...
See all reports like this >>
