Northern Offshore Awarded with the Bid for International Market Offshore Oil and Gas Service Project

With rich security operation experience, professional international operation management team and perfect operation service system, Northern Offshore owned by Shandong Offshore Equipment Co., Ltd.---a subsidiary of Shandong Marine Energy Co., Ltd. recently stood out among 7 international bidders to be awarded with the contract on 2 CJ50 jack-up drilling rigs for Qatar Offshore Self-elevating Drilling Service Project, with a term of 4-year fixed period plus 2-year optional period. This is the only project where the offshore oil and gas drilling services are provided to an international petroleum company by a company other than central enterprises in China and is also the first project for the Company to be deeply engaged in the oil and gas exploration and development along the “Belt and Road” route, symbolizing a significant breakthrough of deep involvement in offshore oil service industry by Shandong Province.

As the largest liquefied natural gas company in the world, Qatar Petroleum has the annual liquefied natural gas output of 77 million tons, ranking the top in the world. A total of 8 rigs are required in this bid inviting, and all operations will be carried out at Qatar northern offshore area where the explored reserve of natural gas exceeds 900 trillion standard cubic feet, about accounting for 10% of the global explored reserve. As the only non-local bid winner, Northern Offshore will use two newly built CJ50 jack-up drilling rigs: Energy Enticer and Energy Edge to provide the oil field services for Qatar Petroleum, including drilling operation. With the operation water depth of 400 feet (about 122 meters) and the maximum drilling depth of 30,000 feet (about 9144 meters), such two rigs can accommodate 150 operators and enable operating in harsh offshore conditions. Their comprehensive performance is at the leading level in the industry.

In recent years, the Company has actively developed marine energy industry and carries out clean energy supply chain service system mainly composed of offshore engineering equipment service, offshore oil and gas transport service, warehousing and logistics services, international energy trade and high and new technologies R&D, and is devoted to becoming an international professional and integrated clean energy service provider. Such bid awarding will have profound influences on the deepened international market development and deep integration in the co-construction of the “Belt and Road” by the Company.