In the evening of July 18, China Offshore Oil Engineering Co., Ltd. (COOEC) issued a “Voluntary Disclosure Announcement Regarding Overseas Projects”.
The announcement disclosed that on July 17, 2024, COOEC and POSCO International Corporation of South Korea signed a EPCIC (engineering, procurement, construction, installation, and commissioning) contract for the development of SHWE Gas Field Phase IV. As the general contractor, COOEC will undertake the design, procurement, marine transportation installation and pre-commissioning general contracting work, with a contract value of about $523 million (approximately RMB 3.8 billion, at current exchange rates).
SHWE Gas Field Phase IV Development Project has a water depth of more than 1,000 meters. COOEC is responsible for the platform retrofit, installation of marine pipeline and umbilical cable, and installation of subsea facilities such as subsea wellhead tray Manifold and marine pipeline terminal FLET. The project construction period is 36 months. This is the first time for Chinese enterprises to win the bidding of international deepwater oil and gas engineering EPC project of 1,000 meters class.
This project is the second offshore EPCIC project contracted by COOEC in Myanmar waters. The natural gas produced by the project will be delivered to China, which is of great significance to the high-quality promotion of the “Belt and Road” oil and gas cooperation.
The operator of the SHWE Gas Field Phase IV Development Project is POSCO International, a large-scale multinational company involved in a variety of businesses, including battery business, green hydrogen business, LNG business, steel production, agriculture, and oil and gas field development.
COOEC stated that the fulfillment of the contract will have a certain impact on the company’s performance and will be beneficial to the promotion of the company’s future business development.The execution of the above projects marks that COOEC’s EPC capability in water depth of over 1000 meters has been recognized and trusted by the owners, and it pushes the company to take a more solid step in the implementation and advancement of overseas strategy, reflecting that the company continues to strengthen the development of overseas market and promote the high-quality development of overseas business.
It is worth noting that COOEC won the competitive front-end engineering design (FEED) of the SHWE gas field Phase IV development project in September 2023, and successfully won the EPCIC contract of the project with excellent technical strength and management capability, creating a precedent for China’s enterprises to provide front-end design + EPC “package solution” in the international offshore oil and gas engineering market.