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Subsea Opportunities in Asia Pacific
17 June 2020
SDI Asia Pacific Energy Trade Team
Kevin Liu
Regional Lead
• Offshore wind
• Marine energy
• Project finance
Helen Chen
China
• Subsea services
• Decommissioning
• Offshore wind
Ketan Pednekar
India
• Offshore E&P
• Subsea services
• Decommissioning
Sridaran Sabapathy
Southeast Asia
• Offshore E&P
• Decommissioning
• Distributed energy
Yukiyo Miyakita
Japan
• Offshore wind
• Marine energy
• Hydrogen
Kevin Liu
Head of China and Head of Energy Asia Pacific
Scottish Development International
Beijing
Based at the British Embassy in Beijing, Kevin is the senior China
representative for Scottish Development International, the Scottish
Government’s international economic agency. He also leads the
agency’s trade development work in the energy sector across the Asia
Pacific region, with a team of specialists in Beijing, Tokyo, Mumbai and
Kuala Lumpur supporting Scottish companies in subsea engineering,
offshore renewables, hydrogen and energy systems.
Prior to joining SDI, Kevin led the UK Department for International
Trade’s communications and marketing team in Asia Pacific, and before
that was part of a Scottish whisky distillery startup. He began his career
in UK Government Communications, then spent eight years in the
political risk industry, specialising in energy, infrastructure, insurance
and project finance in the emerging markets.
Senior Energy Specialist – China
Scottish Development International
Beijing
Helen Chen
Based at the British Embassy in Beijing, Helen leads on energy trade
development in China for Scottish Development International, the
Scottish Government’s international economic agency. She has been
with the agency for over 17 years, during which she has developed
great expertise on China’s energy industry and supported numerous
Scottish companies to win business in this exciting yet complex market.
Helen’s focus in the year ahead includes promoting Scotland’s offshore
engineering services to Chinese operators and contractors, exploring
opportunities in hydrogen transportation, and supporting Scottish supply
chain companies to enter China’s world-leading offshore wind market.
Ketan Pednekar
Senior Energy Specialist – India
Scottish Development International
Mumbai
Based at the British Deputy High Commission in Mumbai, Ketan leads
on energy trade development in India for Scottish Development
International, the Scottish Government’s international economic agency,
focusing on promoting Scotland’s offshore engineering services to
India’s public and private operators. He is also exploring opportunities in
India’s emerging offshore wind and tidal sectors.
Ketan has worked in the Indian energy industry for over 20 years,
including senior positions at Mumbai and Karaikal ports, and 14 years in
engineering and business development at Reliance Industries. He is
also a specialist in asset integrity management and design verification.
Sridaran Sabapathy
Senior Energy Specialist – Southeast Asia
Scottish Development International
Kuala Lumpur
Based at the British High Commission in Kuala Lumpur, Sri leads on
energy trade development in Southeast Asia for Scottish Development
International, the Scottish Government’s international economic agency,
focusing on offshore and renewable energy opportunities in Malaysia,
distributed generation in Indonesia, hydrogen and decommissioning in
Brunei, and offshore wind in Vietnam.
Prior to joining SDI, Sri worked on trade promotion and policy projects
for the British Malaysian Chamber of Commerce, working closely with
the UK Department for International Trade, and sat on the Chamber’s
energy committee. He began his career with BP.
Senior Energy Specialist – Japan
Scottish Development International
Tokyo
Yukiyo Miyakita
Based at the British Embassy in Tokyo, Yukiyo leads on energy trade
development in Japan and Northeast Asia for Scottish Development
International, the Scottish Government’s international economic agency,
focusing on offshore wind, tidal and hydrogen opportunities for Scottish
developers and supply chain companies. She is also exploring
collaboration with Japanese energy companies in third countries.
Prior to joining SDI, Yukiyo worked as a trade advisor for the UK
Department for International Trade for over 16 years, specialising in
energy and infrastructure. She began her career with the Japanese
Ministry of Foreign Affairs and the Development Bank of Japan.
Introduction
Kevin Liu
Head of Energy Asia Pacific / Head of China
Scottish Development International
Beijing
SDI Asia Pacific Energy Trade Team
Scotland China India Southeast Asia Japan
Helen Chen
Beijing
Ketan Pednekar
Mumbai
Sridaran Sabapathy
Kuala Lumpur
Yukiyo Miyakita
Tokyo
Ian Ross
Offshore E&P
Subsea Services
Offshore Wind
Murray Bainbridge
Offshore E&P
Subsea Services
Decommissioning
Offshore E&P
Decommissioning
Marine Energy
Offshore Wind
Marine Energy
Hydrogen
Helen Chen
Senior Energy Specialist – China
Scottish Development International
Beijing
China
• With covid-19 largely contained, China is returning to
normal. According to official reports, as of 25 March
2020, 96.6% of large and medium-sized enterprises
are already working again.
• PMI rebounded to pre-crisis levels at 50.6 in May
2020 and remained above 50 for three months, from a
record low of 35.7 in February 2020.
• Government support is so far focused on critical
infrastructure spending, including transport,
construction, environment and agriculture.
• Further stimulus will be directed to telecoms and
technology, including 5G network, data centres, smart
cities and smart grids, in anticipation of the 14th Five-
Year Plan (2021-2025).
China’s Recovery from Covid-19
• Limited disruption from COVID-19 as all 120 offshore
platforms continued operating. CNOOC reported a
15.9% increase in net profit in 2019, with 17 new
domestic discoveries in Bohai Bay and South China
Sea.
• 2020 capex is likely to be reduced to around $12
billion, the lower limit of its previous forecast, with 227
exploration wells and 8 new domestic projects still on
schedule, and its new offshore wind project in Shantou
already started.
• Ambitious 7-Year Action Plan (2019-2025) to increase
production by 23% to 70 million tonnes oil equivalent in
2025. There are opportunities in subsea engineering
specific to emergence response, decommissioning
and offshore wind.
Key Target – CNOOC
SDI Activities
• With travels been cancelled due to COVID-19, we have
been promoting Scottish supply chain capabilities
mainly through webinars and social media.
• So far we have assisted around 40 Scottish
companies since April and included them in our
ongoing engagement with CNOOC and potential
partners.
• 11 Chinese companies came to us asking for more
information and expressed interest in specific areas
such as ROV, subsea inspection tools, pipeline
inspection and repair solutions, riser analysis etc.
• We are planning to bring a trade delegation to the
Deepwater Energy Conference in Hainan and meet
with COOEC Subsea in Shenzhen in November.
India
Ketan Pednekar
Senior Energy Specialist – India
Scottish Development International
Mumbai
India Energy Outlook
• Our focus is on ONGC and Reliance-BP, which
appear less affected by the current downturn.
• India will likely remain one of the world’s top energy
consumers (currently third), with crude oil and gas
consumption projected to increase 3-5% by 2040.
• GoI will push ahead to reduce reliance on imports and
increase domestic production, including a projected
20% increase in refining capacity by 2025.
• By 2040, renewable energy is set to account for
around 45% of power generation (including a target of
30GW in offshore wind capacity by 2030), while coal
drops from the current 74% to around 46%.
Current Offshore E&P Activities
ONGC
• Eastern Offshore – G1 Fields (4 wells), Vashistha and
& S1 Fields (4 wells), KG 98/2 Block Development (34
wells – under development)
• Western Offshore – Mumbai Offshore for marginal
fields (11 wells)
Reliance Industries – BP
• Eastern Offshore – D1 D3 Fields, MA Field
(production ceased); R Cluster, Satellite Cluster, MJ
Fields (under development); NEC-OSN-97/2 (FDP
submitted)
Upcoming Offshore E&P Activities
Open Acreage Licensing Policy V Bidding
Ongoing bidding for ultra deep water block CY-UDWHP-2019/1
KG‐DWN‐98/2
Block Cluster‐1 +
GS‐29
Development
KG‐DWN‐98/2
Block Cluster‐3
Development
KG‐OSN‐2004/1
Block + GS‐49
Development
Overview 6 Oil wells + 2 gas
wells, 80-700 m
(4 wells > 400 m)
9 gas wells (UDW),
2400-2900 m
11 gas wells,
7-320 m
Value US$665 million US$3.2 billion US$560 million
Award Year 2020 2021 2020
Production 2022 2023-24 2022
Decommissioning and P&A
D1 D3 Field
MA Field
Reliance Industries is planning P&A of 25 subsea wells
in its MA and D1-D3 fields in the next 2-3 years. Most of
the subsea Xmas trees are from Aker Solutions.
MA Field
• Production stopped in September 2018
• 7 subsea wells in 1100m to 1400m water depth
D1-D3 Fields
• Production stopped in February 2020
• 18 subsea wells, 6 subsea manifolds in 400m to
2700m water depth
Margin Field Development
• The Indian Government awarded blocks to various
independent operators for Discovered Small Fields /
Marginal Fields through bidding.
• Operators are looking for innovative and cost effective
development of these marginal, shallow water offshore
blocks.
• Innovative technologies like ‘Tieback of the Future’
could be of significant interest to these operators.
Malaysia
Sridaran Sabapathy
Senior Energy Specialist – Southeast Asia
Scottish Development International
Kuala Lumpur
Malaysia and PETRONAS
PETRONAS cuts CAPEX by 21%
• Domestic projects are unlikely to be affected, however that would change should current economic condition persist or
worsen.
New Leadership at PETRONAS
• Tan Sri Wan Zulkiflee Wan Ariffin will be replaced by his CFO Tengku Muhammad Taufik.
• With the new CEO, industry players are expecting a VP reshuffle at PETRONAS, thus potentially delaying major
announcement on some projects and other initiatives.
Revamping Petroleum Development Act 1974
• Current posturing by the federal government suggests that the legislation may be changed to provide more autonomy over
petroleum resources to states in East Malaysia.
• State-level public sector oil companies are likely to have more discretion over the development and extraction of its
petroleum resources.
Acreage
1. Petronas Carigali
2. Conoco Philips
3. Lundin Petroleum
4. JX Nippon
5. Mubadala Petroleum
6. Ophir Energy
7. HESS
8. KPOC
9. TOTAL E&P
10. RHP Mukah
11. Enquest Petroleum
12. Sapura Energy
13. Repsol
14. Exxon Mobil
15. Shell
16. PEXCO N.V.
17. Murphy Oil
18. Ophir Production
19. PCPP Operating Company
20. Petrofac
21. PTTEP
22. Coastal Energy
23. Vestigo Petroleum
24. Hibiscus
25. Roc Oil
26. Pertamina
Upstream Overview
DRO Oil Fields DRO Gas Fields
Mostly are in close proximity to
producing assets
Some fields with more than
1tcf
Single or Cluster fields for
development
Can be clustered for sizeable
development
Require technology to manage
contaminants
Discovered Resource Opportunities
• Malaysia has more than 12 billion barrels of oil equivalent
(bboe) of undeveloped resources awaiting to be monetised.
• This presents great opportunities for new entrants and
existing players to invest in marginal fields or Discovered
Resource Opportunities (DRO) and extending value of Late
Life Assets (LLA) until abandonment.
Platforms & Subsea Structures Pipelines Floaters
353 Offshore Platforms 616 Lines 7 FPSOs
1 Tension Leg Platform 10,235 km 8 FSOs
14 Subsea Structures 2 FPLNG
1 MOPU
1 FPS
1 SPAR
The following will be key points for typical marginal field development in shallow water offshore Malaysia:
Late Life Assets (LLA)
Snapshot
• Fields adequately
developed with growing
maturity
• < 30 Million stock tank
barrels (MMstb)
• Single, Clusters of fields for
development
Item Consideration
Topside• Minimal Fixed Platform (Topside weight within 500MT)
• Used but good condition Topside
Jacket • Minimal structure to suit to Topside weight, metocean criteria and design fatigue life
Pipeline
• Rigid Pipeline (if more than 10km)
• New technology i.e. Non-metallic Pipeline (if less than 5km) – Note: restriction on
design temperature and pressure
• Flexible Pipeline
• Reinforced Thermoplastic Pipeline
Others
• Subsea wells (for development less < 2 wells)
• Economic of Scale
• Design one build many concept
• Group discount (engineering and fabrication)
• Single campaign (installation)
• Rig installed platform (installation)
• Focus on redeployment
44% of facilities in Malaysian waters are
operating beyond design life.
Key players in Malaysia for P&A:
• Velesto Energy
• Vantage Energy Group
• Uzma Bhd
• Haliburton
• PETROFAC
• Muhibbah
PETRONAS Integrated Abandonment Services
Umbrella Contract
Plugging & Abandonment
Market Research for Scottish based companies
• Primary research – SE Research Services (FREE!) [email protected]
• Second research – DIT OMIS (quote on demand)
• GlobalScots
• Independent bespoke research
Upcoming Events
• Malaysia – Virtual North Sea Technology Week (Aug)
• India – Indian Energy Forum (Oct)
• China – Offshore Wind Webinar Series (Jun-Nov)
• China – Deepwater Energy Conference (Nov)
Further Support and Contact