Asia is interesting market for companies in the offshore sector. Levels of investment are growing and the significance of these regions is expected to increase.

1. OPPORTUNITIES IN THE OFFSHORE INDUSTRY
EAST AND SOUTHEAST ASIA
China
China is one of the four leading countries in terms of constructing
offshore oil and gas exploration and production facilities, and in
terms of building engineering and construction vessels. Licenses for
offshore oil and gas exploration and development and production are
exclusively granted to China National Offshore Oil Corp (CNOOC),
to China National Petroleum Corp (CNPC) and to China Petroleum
& Chemical Corp (Sinopec). Foreign companies are only allowed
access to the country’s offshore oil and gas business through
partnerships with these three Chinese companies, and the Chinese
partner’s share of any joint project must be at least 51%.
Australia
Over 80% of Australia’s known gas reserves and more than 95% of its known
oil reserves are located offshore. Investments in oil and gas exploration in
Australia are focused on offshore activities and make up approximately 70%
of total expenditure - in 2012, investment in the offshore sector totaled AUD
2.8 billion (EUR 1.9 billion). The Australian government has awarded 13 new
offshore petroleum exploration permits this year (2013).

2. Business opportunities in the offshore industry in East and Southeast Asia
Singapore
Some 70% of the world’s jack-up rigs are now built in
Singapore and seven out of ten vessel conversions into
floating oil production units take place there. Companies
operating in Singapore are very active in the Arctic
marine sector, one example is the building of multipurpose vessels with icebreaking capacity for Norway.
Singapore has been granted permanent observer
status at the Arctic Council. Keppel Corporation and
SembCorp Marine, Singapore’s rig makers, are among
the world’s largest builders of offshore oil rigs. At the
end of 2012, Keppel’s net orderbook stood at SGD
12.8 billion (EUR 7.5 billion) and SembCorp Marine’s net
orderbook was SGD 13.6 billion (EUR 8 billion).
Katja Haukipuro
Consultant
katja.haukipuro@finpro.fi
+358 40 762 7874
Malaysia
The oil and gas sector plays a central role in the
Malaysian economy, contributing approximately one
fifth of national GDP. Petronas, Malaysia’s stateowned oil company, owns and controls all of the
country’s petroleum resources. To support National Key
Economic Areas (NKEAs), the Malaysian government
has established Entry Point Projects (EPPs) with
investment totaling EUR 100 billion expected by
2020. The 12 EPPs in the Oil, Gas and Energy
sector represent potential business opportunities for
companies operating in the industry.
Pietro Karjalainen
Area Sales Manager
pietro.karjalainen(a)finpro.fi
+358 20 469 5787
www.finpro.fi
www.finpro.fi/english-pages/opportunities-worldwide

3. Business opportunities in the offshore industry in East and Southeast Asia
South Korea
South Korean companies specialize in building offshore
rigs - in terms of value, deliveries from South Korea are
the world’s largest. Hyundai, Samsung and DSME, the
three biggest marine industry companies, are all based
in South Korea. South Korean shipyards are seeking to
improve their competitiveness in the offshore construction
sector and are always looking for new partners. South
Korea’s government has identified offshore research and
construction in the Arctic as a focus area, so there is
specific demand for related Finnish know-how. In this
connection, South Korea is currently Norway’s most
important business partner in Asia. The value chains for
containerships and offshore rigs differ significantly: in
containerships, some 90% of the machinery, equipment
and other requirements are sourced locally, in offshore rig
construction this figure is only 20%. Finnish companies
planning to do business with South Korean offshore
players should have a good working knowledge of the
vessel owners, system integrators and shipyards they will
Katja Haukipuro
Consultant
katja.haukipuro@finpro.fi
+358 40 762 7874
be dealing with. A large proportion of the vessel owners Shell and Statoil are good examples - are Europe-based,
and system integrators such as ABB and Kongsberg are
familiar to Finnish companies. The majority of procurement
decisions are made by shipyards.
Could growth for your company come from offshore
operations in East and Southeast Asia?
Finpro has long experience of Asian markets and extensive
local knowhow. Our experts have wide-ranging contact
networks and can help you gain access to decision makers.
We understand both the industry value chains in different
countries and their business requirements. By participating
in global value chains, your company can expand through
involvement in projects in growth sectors in other markets.
To seize these business opportunities, contact us for
further information.
Pietro Karjalainen
Area Sales Manager
pietro.karjalainen(a)finpro.fi
+358 20 469 5787
www.finpro.fi
www.finpro.fi/english-pages/opportunities-worldwide