|dc.description.abstract||This thesis has been conducted by four students on the behalf of Sevan Marine
ASA, a Norwegian company in the floating offshore application industry. The aim
of the thesis is to provide the company with an overview of the Chinese offshore
industry, and possible entry strategies for their FPSO and driller units. The thesis
is based on secondary literature and personal interviews.
With expanding deep-sea activities in South China Sea, opportunities for
international companies with deep-sea technology will emerge. This is due to the
lack of deep-sea technology in the Chinese oil industry, thus creating
opportunities for Sevan Marine.
The findings reveal that the Chinese market is complex, with a high degree of
governmental involvement. In addition, the legal framework, poor IPR standards
and a distinct business culture, makes it a challenging market.
As the Chinese offshore market has a monopolistic structure, Sevan is dependent
on an agreement with the state owned oil company CNOOC. Sevan should not
invest heavily in the Chinese market before an agreement with CNOOC is
reached. However, increased market activities at the Singapore office are
recommended, due to close proximity and reasonable financial costs.
Through the established network with COSCO, Sevan Marine might develop a
sustainable relationship with CNOOC, resulting in future contracts. They should
create a position in the Chinese market based upon their deep-sea drilling
capabilities and history of production in China.
A Build, Own Operate model is the preferred business model for Sevan Marine in
China. By conducting this through a JV with COSCO, important financial
contributions will be secured as well as access to key networks and relationships.
An alternative strategy is to sell a finished driller to CNOOC, which will create
financial gain in short-term for Sevan Marine, but includes risks concerning IPR.||en_US