How To Promote Sino-Norwegian Cooperation Within Offshore Engineering

CHINA’S GOVERNMENT HAS TARGETED OFFSHORE ENGINEERING AS A STRATEGIC INDUSTRY TO DEVELOP, DUE TO THE COUNTRY’S INCREASING ENERGY NEED, AND THE POLITICAL IMPORTANCE. THE AIM OF THIS THESIS IS TO FIND OUT HOW CHINA’S OFFSHORE CONSTRUCTION YARDS MAY INCREASE THEIR MARKET SHARE, AND HOW TO INCREASE SINO-NORWEGIAN COOPERATION IN THIS INDUSTRY.THIS PAPER HAS AN EXPLORATIVE FORMAT, AND IS BASED ON TEN QUALITATIVE INTERVIEWS WITH INDUSTRY LEADERS. MAIN THEORY OF THE ANALYSIS IS THE VALUE SYSTEM, AND COMPARATIVE ADVANTAGE THEORY. EXPERIENCE ACCUMULATED WITHIN THE OFFSHORE INDUSTRY, AND HOW IT AFFECTS THE INDUSTRY IS THE MOST INFLUENTIAL DIFFERENCE BETWEEN THE TWO NATIONS. COOPERATION BETWEEN CHINA AND NORWAY IS BENEFICIAL TO BOTH SIDES, WITH NORWEGIAN TECHNOLOGY AND KNOWHOW BEING TRADED FOR MARKET SHARE IN AN INCREASINGLY STRATEGIC MARKET.CHINA IS TRYING TO CHANGE THEIR COMPARATIVE ADVANTAGE TOWARDS ACHIEVING A HIGHER DEGREE OF DOMESTIC VALUE CREATION.COOPERATION IS HIGHLY SUGGESTED WITHIN EPC COMPANIES AND HUMAN BASED SERVICES. HSE IS ALSO SHOWN TO BE KEY IN INCREASING MARKET SHARE FOR CHINESE YARDS.THE PAPER CONCLUDES THAT PROJECT MANAGEMENT, TECHNICAL KNOWHOW, AND HSE IS NEEDED TO INCREASE CHINESE YARDS’ MARKET SHARE. LOCAL PRESENCE IS KEY FOR SUPPLIER AND SERVICE PROVIDERS TO GAIN MARKET ENTRY, WHILE IPR PROTECTION IS OF LITTLE CONCERN TO COMPANIES ALREADY IN THE CHINESE MARKET.CHINESE COMPANIES ARE SUGGESTED TO GAIN THE NEEDED CAPABILITIES THROUGH ACQUISITIONS OF NORWEGIAN COMPANIES, OR BY ENTERING JOINT VENTURES AND CLOSE BUYER-SUPPLIER RELATIONSHIP.THE GOVERNMENT SHOULD INCREASE INCENTIVES FOR OFFSHORE PETROLEUM COMPANIES, TO AID IN THE DEVELOPMENT OF THE INDUSTRY SECTOR.