China oilfield CAPEX to reach USD 4 billion in 5 years

Monday, 07 Feb 2011
Reuters reported that China largest offshore oilfield services firm, China Oilfield Services Ltd plans to aggressively expand into the high end market investing at least CNY 30 billion to upgrade its equipment and technology over the next five years.
China Oilfield expansion push matches parent firm and major client, state backed offshore firm CNOOC which is stepping up development in deepwater oil and gas exploration.
Mr Liu Jian China Oilfield chairman, speaking in an interview said further investment would be made into high end technology including deepwater, engineering, maritime transport as well as upgrading basic equipment.
He said "If in the next 5 years, deepwater exploration and production is on a huge scale, our current preparation is still not enough. We need even more investment. He added that as China Oilfield has only recently begun to strengthen deepwater exploration in the South China Sea, it was hard to estimate the required amount of investment needed.”
Mr Liu said in the coming 5 years, the amount of capital investment would not drop below levels seen from 2006-2010, adding that in 2013-2014 and China Oilfield would see heavy capital investment as deepwater activities start to pick up speed.
While Mr Liu said an investment on the scale of China Oilfield purchase of Norway Awilco Offshore ASA for around USD 2.5 billion in 2008 was unlikely the offshore firm would look for opportunities to acquire technology from foreign firms.
Most analysts are bullish on the prospects for China Oilfield eyeing the firm as a key beneficiary of an upturn in the oil services sector and attractive valuations.(sourced:Reuters)