at present, the international crude oil, energy market oversupply serious, oil prices continue to be depressed. In the face of persistently low oil prices and slow growth in crude oil consumption demand, oil companies have been forced to significantly reduce the scale of investment in oil and gas exploration and development (E & P), reduce new projects and slow down the pace of capacity construction. These measures have had a huge negative impact on the global oil and gas industry, affecting the entire oilfield engineering and technical service market, resulting in a reduction in market operations, an imbalance between supply and demand, a decline in prices, and a serious shrinkage in market value.

global macroeconomic growth slows, oil prices remain low

, due to the continued decline in crude oil prices, overseas petrochemical industry owners generally have tight budgets, oil companies have reduced the scale of exploration and development investment, and a large number of projects have been suspended or postponed. The demand for overseas oilfield engineering and technical services has decreased, the service price has dropped, the market has shrunk seriously, overseas customers are more and more sensitive to the quotations of bidders, and the price has become the most important basis for bid evaluation, so the quotations of all suppliers have been lowered to adapt to this trend, and the competition among suppliers is becoming more and more fierce.

The demand for overseas oilfield engineering and technical services has decreased, service prices have fallen, and the market has shrunk severely.

Oilfield engineering and technical services are an important part of the upstream business of oil and gas exploration and development, and are a specific means to implement the investment plan and operation plan of exploration and development. Therefore, investment in exploration and development is a direct factor in the size of the oilfield engineering services market.

the growth of global investment in exploration and development in 2014, the scale of overseas oilfield engineering and technical services market continued to expand, reaching US $450.593 billion billion for the whole year, an increase of 9.2 per cent over the same period last year. The North American market accounts for 46%, which is the largest overseas regional market for oilfield engineering and technical services, followed by Europe/Africa/CIS market (24%), Middle East/Asia Pacific market (19%) and Latin America market (11%).

With the sharp decline in the scale of global oil and gas exploration and development investment, the overseas oilfield engineering and technical service market will face a situation of reduced demand, lower raw material costs and lower service prices in 2015, and the market scale will shrink seriously. It is expected that the overseas oilfield engineering and technical service market will close at US $352.468 billion for the whole year, down about 21.8 per cent from the same period last year. The decline, spread and duration are all greater than after the outbreak of the financial crisis in 2009, and the recovery is slow.

the near-term overseas oilfield engineering and technical services market will continue to be volatile and sluggish, with bleak prospects for recovery.

According to the analysis and judgment of the International Monetary Fund, IEA and other organizations and public opinion on the global economic development situation and the trend of the crude oil market, the factor of economic growth is difficult to increase crude oil consumption in the short term, and the oversupply in the crude oil market will continue, and international oil prices will also Will continue to be depressed.

in this context, the operating efficiency of oil and related products companies is declining, and it is difficult to fulfill the 2015 exploration and development investment plan and implement the established construction projects. Therefore, it may be their most realistic practice to continue to reduce or delay construction projects and stabilize the balance of payments. This approach will continue to weaken the entire oil and gas exploration and development industry, and further compress the oilfield engineering and technical service market. The result is likely to force oil companies to lower their 2016 exploration and development investment plan expectations, leading to more serious consequences. This will be the biggest obstacle to the recovery of the international petroleum and even chemical engineering technology service market.

reviewed the overseas oilfield engineering and technical service market in the past year. Due to the reduction of service workload and the decline of service prices, some resource countries have been strengthening market protection, which has led to the tightening of the low-end service market and the operation space of some international service providers. Squeezed. Some service providers have to shrink their operations or even withdraw from the international market, which has led to increased market concentration and intensified monopoly patterns.

facing the current economic situation, our enterprises are also facing unprecedented challenges and competition. Due to the downturn in the domestic petrochemical market, China Map has also devoted more energy to overseas markets. In the course of more than 10 years of development, China Map has undertaken dozens of overseas projects of different sizes. The distribution of customers includes popular areas of overseas projects such as North America, Europe, and the Middle East. It has accumulated a lot of overseas project experience, and of course it has encountered various Various problems. For example, in the start-up phase of undertaking a Saudi project, we identified more than 70 risk points and prepared risk plans in advance, but we still encountered unforeseen problems in the implementation process, although they were all resolved in the end. Now give a few examples to highlight how we have faced and solved the problems encountered in these overseas projects:

the international situation is changeable, it is difficult to predict the impact on the project

in the Middle East project, due to oil production cuts, war and other news will cause the customer budget to drop, the project put on hold and delay, also has an impact on the project in progress. Some projects have waited for more than a year for the second phase to start after the end of the first phase. These problems are difficult to foresee and have high risks, which have a great impact on the enterprises undertaking the project. Therefore, when undertaking overseas projects, it is necessary to conduct a comprehensive analysis and research, comprehensively consider various risks that may arise, how to avoid risks and emergency plans after risks occur, so as to be prepared.

cultural differences, language communication barriers

the huge differences in culture, religion and language between the two sides in overseas project cooperation will directly lead to the difficulty of accurate communication between the two sides, and the problems of lifestyle and time difference also cause many areas that need to be coordinated in the way of work. China Map Company will focus on communication methods when undertaking overseas engineering design service projects. For example, in a Dutch project, we let engineers go to the other company to study overseas on the spot. During several months of getting along, we let relevant personnel of the project understand the life style, working style and communication style of both parties, and learn relevant knowledge and regulations of the project. The customer stationed the project manager, regular engineer meeting exchange, training, improve our design ability, build mutual trust.

visa approval, and personnel exchanges are not convenient.

overseas projects involve frequent personnel exchanges, the visa processing time is long and the time limit is short, which increases the burden on the project. in Saudi projects, due to the special nationality of customer visitors, such as Pakistan and other countries, Chinese visas are often difficult to pass, resulting in the suspension of personnel exchange plans.

, in order to avoid similar things, when undertaking overseas projects, China Map wants to be in front of customers in everything, confirm the travel schedule with customers as early as possible, make arrangements for personnel and visa applications in advance, and plan early and reduce delays.

Overseas Projects

The differences in bilateral and multilateral laws, policies, religions, cultures and customs caused by different countries and regions, as well as the restrictions on overseas business coverage of domestic banks in international business, have added difficulties to business settlement. Faced with these problems, our company has strengthened cooperation with overseas banks and sought suitable solutions for different pain points, especially in the Middle East, in the letter of guarantee, offshore settlement business accumulated experience.

There are differences in the management of international engineering projects and domestic projects.

there is a big difference between international engineering projects and domestic project management, problems that would have been easy to solve at home become difficult to cope with abroad, which easily makes enterprises that have just participated in international projects afraid of difficulties.

Chinese enterprises do not have enough mastery of foreign standards and norms, they have to use alternative methods such as Chinese standards and norms, which have buried hidden risks or caused risk exposure or direct losses to the project. The main manifestations are: in the bidding stage, the bidding documents cannot be compiled according to foreign design standards and specifications; in the design stage, the design cannot be carried out according to foreign standards and specifications, and the design drawings cannot meet the contract requirements; in the equipment selection stage, one-sided understanding of foreign standards and specifications, ignoring the differences in the region or country where the project is located and the specific technical standards and technical parameter requirements of the contract; in the construction stage, construction enterprises cannot carry out construction in accordance with foreign construction standards and specifications at the initial stage of the project.

my country's construction specifications claim to be a system that has been tested by years of practice and is scientific, reasonable and complete, our specifications are not recognized internationally. Generally speaking, compared with the internationally accepted European and American specifications, my country's The specification requirements are relatively loose, and it is difficult for our technicians to adapt to the strict European and American specifications.

in international project management is particularly important. It is the weakest link in the implementation of international project management by Chinese enterprises. The contents covered by international project contracts are relatively broad and complex, including bidding documents, bidding documents, general conditions of contracts, special conditions of contracts, general specifications, special specifications and drawings, etc. Contract management is the main theme of international project management, which runs through the whole process of project management.

file management is also very important in international engineering construction. In addition to the file files regular in domestic engineering, it also includes all kinds of correspondence with engineers and owners, as well as construction logs, construction memos, meeting minutes, etc., which should be properly preserved as part of the contract documents.

, in view of the above situation, we have made a lot of efforts in improving the skills of our employees. We should not only be proficient in domestic standards and norms, but also be clear about foreign standards and norms. In the process of undertaking foreign projects, the project personnel are strictly screened, the project is checked step by step, and all documents (including process documents) generated in the project are systematically and perfectly managed and preserved, so that there is no omission.

In short, under the current international economic situation, the reasons for the impact on the development of Chinese enterprises are relatively complex, and the problems encountered in the process of undertaking overseas projects are also various. Therefore, we should look clearly at the practical problems faced when undertaking overseas projects, and look for favorable measures to alleviate the current situation. In the past few decades, our international project contracting business has made certain development. As long as we can objectively find their own shortcomings, and take the right measures, I believe that China's international project contracting will continue to play an important role in China's economic development.