China's top offshore serviceprovider China Oilfield Service Limited (COSL) is to embark on a major tender for offshore service vessels, as it looks to increase its capacity in the sector.
Sources said the company — headed by chief executive Li Yong — is finalising the bid document, and is ready to enter the market with about 14 offshore service vessel orders after the Chinese New Year in mid February.
The company has just completed a prequalification and drawn up a shortlist of four Chinese yards to take part in the tender.
The yards shortlisted are Huangpu Shipyard in Guangdong province, Shanghai Shipyard in Shanghai, Yiulian Dockyard of China Merchant Heavy Industry in Shenzhen, and Mawei Shipbuilding in Fujian province.
Although the players have OSV-building track records, the list comes as a surprise to many industry participants because it does not appear to include privately-owned Sinopacific Shipbuilding, China’s top OSV yard by order. Sources said COSL didn’t include Sinopacific due to price concerns.
Sources said COSL will soon order another 20 similar newbuilds after the first batch of 14 units is offered.
The 14 orders comprise of 10 platform supply vessels and four anchor handling tug supply (AHTS).
Sources said that two PSVs with 8000 HP will be designed by Shanghai Merchant Ship Design and Research Institute (SDARI) with rest with 6000 HP and 9000 HP will be designed by Norway’s Havyard.
The Havyard contract will have Havyard 832 design that will initially provide support in the South China Sea and Bohai Bay.
The two 12,000 HP AHTSs will be designed by Ulstein, while the other two 15,000 HP units will be designed by Royce Rolls.
The latest order is part of a larger plan by the company to build up to 50 OSVs to meet domestic offshore demand, as China seeks to increase oil and gas production in this sector to 60.98 million tonnes per annum of oil and gas equivalent per annum by 2015 — about 1.22 million barrels per day — and up from 50 million tonnes in 2010.
COSL‘s current fleet includes nine AHTS units, five PSVs, 26 standby vessels, four crew boats, 24 multi-purpose vessels and four workover barges. This fleet is managed and operated from COSL bases in Shenzhen and Zhanjiang in Guangdong province and Tianjin in northern China.