China Oilfield Services
Encyclopedia
China Oilfield Services is an oil
field service. It is a majority owned subsidiary of Chinese state owned company CNOOC Group. It also has a listed sister company in Hong Kong, CNOOC Limited
.
China Oilfield Services is seeking acquisition targets in Southeast Asia
, the Middle East
and Central Asia
, to bolster its operating scale and technical competencies. But high oil prices and a speculative investment environment have made agreements difficult to come by, company secretary Chen Weidong told the South China Morning Post
.
The parent company of dominant offshore oil producer CNOOC is particularly interested in companies operating in Indonesia
, Malaysia and the Caspian Sea
.
, West Africa
and the Middle East
.
With crude prices more than doubling in the past two years, a speculative merger and acquisition frenzy has gripped the oil services market.
COSL had an office in Kuala Lumpur, Malaysia briefly in the early 2000's 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
with a 2007 year end market cap of $117.6 USBillion and Halliburton
with a 2007 year end market cap of $33.4 USBillion.
According to Mr Chen, US firms tend to be the most expensive with enterprise values running two to three times book value
s, 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).
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.
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
field service. It is a majority owned subsidiary of Chinese state owned company CNOOC Group. It also has a listed sister company in Hong Kong, CNOOC Limited
CNOOC Limited
CNOOC Limited is the major Hong Kong listed subsidiary of China National Offshore Oil Corporation. CNOOC Ltd is listed in Hong Kong and also trades in New York ....
.
China Oilfield Services is seeking acquisition targets in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
, the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and Central Asia
Central Asia
Central Asia is a core region of the Asian continent from the Caspian Sea in the west, China in the east, Afghanistan in the south, and Russia in the north...
, to bolster its operating scale and technical competencies. But high oil prices and a speculative investment environment have made agreements difficult to come by, company secretary Chen Weidong told the South China Morning Post
South China Morning Post
The South China Morning Post , together with its Sunday edition, the Sunday Morning Post, is an English-language Hong Kong newspaper, published by the SCMP Group with a circulation of 104,000....
.
The parent company of dominant offshore oil producer CNOOC is particularly interested in companies operating in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Malaysia and the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
.
Overseas
COSL's overseas revenue surged 133% year on year in the first half to 209.8 million yuan, driven by demand for its services in IndonesiaIndonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, West Africa
West Africa
West Africa or Western Africa is the westernmost region of the African continent. Geopolitically, the UN definition of Western Africa includes the following 16 countries and an area of approximately 5 million square km:-Flags of West Africa:...
and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
With crude prices more than doubling in the past two years, a speculative merger and acquisition frenzy has gripped the oil services market.
COSL had an office in Kuala Lumpur, Malaysia briefly in the early 2000's 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 SchlumbergerSchlumberger
Schlumberger Limited is the world's largest oilfield services company. Schlumberger employs over 110,000 people of more than 140 nationalities working in approximately 80 countries...
with a 2007 year end market cap of $117.6 USBillion and Halliburton
Halliburton
Halliburton is the world's second largest oilfield services corporation with operations in more than 70 countries. It has hundreds of subsidiaries, affiliates, branches, brands and divisions worldwide and employs over 50,000 people....
with a 2007 year end market cap of $33.4 USBillion.
According to Mr Chen, US firms tend to be the most expensive with enterprise values running two to three times book value
Book value
In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impairment costs made against the asset. Traditionally, a company's book value...
s, compared with one or less in Europe and Asia.
COSL claims a 95% share of China's market for offshore drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
services, 70% of the marine
Marine (ocean)
Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...
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 OffshoreAwilco Offshore
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...
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
Statoil
Statoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
, the state oil company of Norway. The deal increased the number of COSL's operating rigs
Drilling rig
A drilling rig is a machine which creates holes or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person...
to 22 from 15 and created the world's eighth largest rig fleet.