China-Oil And Gas "Pandamonium"

Abstract

Introduction "PANDAMONIUM"-a wild, exciting time is in store for China's oil patch. Plans to triple the production rate to 6 million bbls per day by the year 2000, and to triple gas production to 3.7 bcf per day in the next five years, clearly indicates the Land of the Pandas is where the action is, both now and well into the next century. Where will the Canadians be? I believe we can be right in the middle of China's oil boom. In China, the giant panda symbolizes strength, bravery and good fortune. And the panda and the Canadian oilman have certain similarities. They tend to be industrious, quietly and efficiently going about their tasks, in a risk-oriented environment. The result is that use of Canadian technology, equipment, personnelnd expertise are steadily on the rise in China. This paper highlights a few of the Canadian companies and their people who have won projects in China through hard work, innovative selling, tough negotiating, persistence and patience. NOVA Corporation of Alberta, Calgary (Petrochemicals, pipeline engineering consulting, operational training, pipeline-related products, heavy oil production consulting and telecommunications) NOVA'S marketing approach to China started in 1974 with the hosting of senior technical delegations from the Pipeline Bureau and Ministry of Petroleum Industry (MOPI) on tours of NOVA'S operating pipeline systems. Many exchange visits followed, and over the years a relationship of trust, friendship, credibility and continuity was established. From 1974 to 1988, 115 Chinese delegations visited NOVA. In 1983 the first commercial contract was signed to train four Chinese pipeline engineers on the NOVA system in Alberta in the operation of pipeline pigging. NOVA is now providing to China:Pipeline engineering and hands-on operational training in both Canada and China through Novacorp International Consulting Inc. (Fig. 2);Grove values and surge relievers made in Oakland, California;Cold-weather heavy oil production technology for the Karamay field in northwest China through Husky Oil;Three types of polyethylene. low density, high density and linear low density polyethylene resin produced by Novacor Chemicals in Joffre, Alberta and Moore Township, Ontario. NOVA chairman Bob Blair reflects on NOVA's China's activities:"we wanted to establish ourselves as a leader ... we could see a future for our kind of work in China. Right now, China is the most ambitious country in the world in terms of oil and petrochemical production and development." NOVA is a strong position to participate in China's long-term economic growth and energy. The following chronology of events illustrates NOVA's China activities from 1974 to present: NOVA's China Activities (Fig. 3)1974-Initial meeting with Ministry of Petroleum Industry (MOPI) and Pipeline Bureau officials.1982-Signing of cooperation agreements between Novacorp, China Petroleum Engineering Construction Corporation (CPECC), and China Offshore Oil Development and Engineering Corporation (COODEC).1983-Training of engineers from China National Offshore Oil Corporation (CNOOC) and engineers from the Pipeline Bureau of NOVA's pipeline operations.