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Business / Companies

Moving toward energy security

By Shi Jing (China Daily) Updated: 2016-07-19 08:14

Moving toward energy security

MSP/DRILEX's oil exploitation equipments at an expo in Beijing, Oct 19, 2015. [Photo/VCG]

China has been reliant on oil imports for decades. Now, however, domestic companies are developing their own technologies that can ensure the country's energy security.

Shanghai-based MSP/DRILEX Production and Manufacturing Management Co Ltd stands out in this regard.

Founded in 1986, MSP/DRILEX specializes in research, design, production and engineering technology of high-end petroleum and natural gas drilling equipment.

It is now the only company capable of launching a number of core systematic undersea petrol-gas drilling equipment in China.

"Nearly 60 percent of China's oil industry has been reliant on imports, making the country a major importer globally. At the same time, the country's oil production has been contracting due to the decline of land reserve.

"The central government has initiated the country's ocean strategy. But the production equipment technology for undersea oil and gas drilling still relies on Western countries, which will put the country's energy security at risk," said Huang He, chairman of MSP/DRILEX.

Last July, MSP/DRILEX set up a joint venture company with the country's largest offshore oil and gas producer, China National Offshore Oil Corporation, in the hope of advancing the development of the country's deep sea oil drilling equipment and technology, as well as accelerating the industrialization of this technology.

As early as 2011, the company had become the only Chinese company to acquire global supplier qualification from industry leader and French oil giant Total and Royal Dutch Shell Group. A special test base of underwater production system authorized by these two companies has been set up within the company's plant in north Shanghai.

As an industry leader, the equipment produced by MSP/DRILEX has been exported to more than 70 countries and regions including Thailand, Indonesia, Syria, Venezuela, Malaysia and Saudi Arabia.

"The Belt and Road Initiative has provided opportunities for the export of Chinese oil and petroleum drilling equipment. More Chinese companies will be able to explore more overseas markets in the upcoming three decades," said Huang.

According to Chen Mingbo, director of the Shanghai Municipal Commission of Economy and Information, manufacturing has become the new competitive field in Shanghai.

The city's core competitiveness still needs to be enhanced as industry leader. Firms such as MSP/DRILEX are still a rarity. In this sense, the city will focus on achieving breakthroughs in high-end manufacturing.

During the 12th Five-Year Plan period (2011-15), industries engaged in value added services and products took up 28.5 percent of Shanghai's GDP, and 15 percent was contributed by strategic emerging industries.

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