DNV Software Greater China has won a 2.7 NOK million contract with China National Offshore Oil Corporation (CNOOC). The contract is the third in a year, representing an important strategic investment for the Chinese oil company’s deepwater field developments in the South China Sea.

China’s impressive economic growth has doubled oil imports over the past five years reaching 120 million tons in 2004, while total oil consumption topped 300 million tons. These increases have elevated China to second place in the world’s table of largest oil consumers, behind only the U.S.

China’s search for oil and gas supplies to meet their ever-increasing demand has accelerated their domestic exploration including high-tech deepwater developments in the South China Sea.

CNOOC, a state-owned oil company with overall responsibility for the exploitation of offshore oil and gas resources, is expected to invest 4.6 billion Yuan this year in field developments alone.

“Sesam has rapidly become the market-leading software solution for the design of floating offshore installations in China,” says Øystein Goksøyr, Regional Manager for DNV Software Greater China. “Chinese industry is acknowledging the expertise of both DNV Software specifically, and Norway generally, in the development
of deepwater fields. It recognises that much of this know-how, built up over many years, is captured in the software applications.

”CNOOC is in the process of early design evaluations of its deepwater installations; an important goal is to be in production within five years. “The contract positions DNV well for further involvement in these projects, and I’m expecting the other major oil companies in China to follow CNOOC’s lead by selecting Sesam as their tool of choice in the near future,” says Goksøyr.

While DNV established its maritime business in China in 1888, DNV Software established its regional office in Shanghai in March this year to better serve the growing market for commercial software in China. “Our strategy in China has paid off well,” says Goksøyr who is expecting to grow revenue by more than 100% compared with last year.