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COSL Successfully Completed China’s First Geophysical Exploration Operation in North Pole Waters
Time:2016-08-09 Size:[ Large Medium Small ]

China Oilfield Services Limited (“COSL” or the “Company”) saw its most advanced 12-streamer seismic vessel “HYSY 720” completed an operation in two blocks in North Pole Barents Sea at Tuesday, August 9; the operation lasted for 100 days. The accomplishment filled the vacuum of China’s oilfield services sector in 3D seismic data acquisition in North Pole, and wrote a new monthly seismic data acquisition record of 1,820.58 km2, also the highest record in China. Completion of this operation marks the successful development of 3D seismic exploration operation in waters around the world and presents a strong support to “going out” of domestically developed technology and equipment to participate in co-operations in the oil and gas segment under the “One Belt and One Road” Initiatives.

This operation took place in north Barents Sea within the Arctic Circle above the latitude 75 degrees in hinterland more than 900 km above the Arctic Circle. The insurance industry has already declared operations in areas above latitude 70 degrees as high risk. This is the first attempt by China in performing 3D seismic data collection in ultra-high latitude and ultra-low-temperature waters. “HYSY 720” has become the first vessel setting sail to that region in the history of outbound transportation of China. The capability to operate in those waters is rare among the few global geophysical services providers.

The operating environment in north Barents Sea is very complicated and sea water there is mostly glaciers, at zero degrees Celsius even in July. The Company’s operation team manager Chen Zhiwei said: “We have no precedence to follow for this operation in North Pole. The low temperature operation, the persistent daylight and the narrow window that allowed operation to take place presented unprecedented challenges to team members and the exploration equipment.

Faced with the difficulties, the Company’s team members looked for solutions and measures and stringently controlled the quality of operation as they accurately forecasted changes in tides and developed appropriate operation solutions. In the course of delivering the operations, the team proactively shouldered their green, low-carbon footprint and environmental protection responsibilities. They used low-sulphur fuel oil that met European standards. They protected mammals in Arctic waters and minimized impact of their operation on the environment.

There is only a short window of four to five months in a year for operations in the chilling Arctic waters. In order to complete the operation with high quality within the limited window available, the Company’s team unleased their strong spirit against the oil industry and relentlessly met challenges of difficulties and tiredness to race with time. The crew implemented a round-the-clock operation routine and tackled the impact on team members from the prolonged daylight. They seized every single minute and second during the operation and adjusted the turn radius and duration of the vessel, while maintaining and replacing underwater equipment seamlessly round the clock. That helped progressively improve the efficiency and quality of the operation and achieve a new record in monthly collection of 3D seismic data for China within the month of July. The customer gave a “thumbs-up” appreciation as they received the data processing results on location and said: “These data are good and they are the best gift you presented to us. We extend our heartfelt appreciation to our friends from China.”

“HYSY 720” is the first deepwater 3D seismic vessel of the latest generation in Asia and the first grand deepwater seismic vessel proprietarily built in China. It is the first ocean engineering vessel that meets PSPC standards ever designed and built in China and the first 12-streamer dual-source large-scale seismic vessel in China driven by diesel-electric propulsion system that is capable of sail to Class 1 unlimited navigation zone around the world.

In recent years, COSL has been adhering to its “specialize to become strong” strategy to unrelentingly enhance its equipment and technology capabilities, ploughing much effort in “become strong”. It is now in processing of integrated technology service capabilities in exploration, development and production at depths of 3,000 meters in waters around the world.

Faced with the persistent low oil price, while meeting demand for oil and gas exploration and development in domestic waters in China, COSL has been accelerating its “going out” strategy and actively participated in competition in the international oilfield service market. It is now deriving 40% of its revenue from the overseas. In the geophysical data acquisition segment, on the top of the North Pole operation by “HYSY 720”, “HYSY 718” has completed operations in New Zealand and the Far East since the beginning of this year, while “HYSY 751” and “HYSY 770” are now operating in the Middle East waters. The Company now operates 43 pieces of large-scale equipment in the five major areas of Northern Europe, the Middle East, Southeast Asia, the Far East and the Americas.

COSL believes as a “going out” pioneer in the oilfield services industry in China, the Company is capable of and confident about meeting challenges from low oil prices. Looking ahead, the Company will proactively participate in co-operations in the oil and gas industry under the “One Belt One Road” Initiatives. The Company will focus on six regional markets including Northern Europe, the Middle East, Southeast Asia, the Far East, the Americas and Africa. It will accelerate development of the Company’s international capabilities and the pace of its technology development in order to handle the international competitiveness of China in the oil and gas exploration and development in the world.

 


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