Chengmai Oil & Gas Exploration and Production Service Base Project

1. Positioning and Functions

(1) Positioning:

Chengmai oil & gas exploration and production service base project is to construct a service base for oil and gas exploration and production in the South China Sea and to increase the strategic supply of national energy and to accelerate the establishment of a prestigious international energy economic hub.

(2) Functions:

★Oil & Gas engineering technology service, such as geophysical prospecting, drilling, well logging, well cementing, well completion, fracturing acidizing, production collection, offshore platform construction, equipment maintenance and repair.

★Logistics support of Oil & Gas development, such as helicopter, supply ship, vehicle rental service and logistics material supply.

★Financial and professional services, such as providing bank, financial lease, insurance, law, exhibition, outsourcing service and other multidimensional service support for offshore oil companies.

2. Planning Site Selection and Land Use Scale

The scope of the project is north to the wharf of Macun Terminal phase II，south to Guihua Road, east to Jinma Avenue and west to the Macun Terminal phase III. The regional planning area of Chengmai oil and gas exploration and production service base is 8355 mu (5.57 square kilometer), among them: the port area is 1118.9 mu, Lingang oil and gas exploration and production service area is 4394.3 mu, the port logistics area is 617.9 mu, the cross-border e-commerce and supply chain finance zone is 817.2 mu and the Lingang comprehensive service area is 1406.7 mu.

3. Investment Scale and Construction Period

By the end of 2020, 2025, and 2030, it is expected to attract 15 billion yuan, 25 billion yuan and 50 billion yuan respectively.

The construction period is divided into three stages:

★Establishing the prototype of oil and gas exploration and development service base (2018-2020, basically completed);

★Forming a complete marine resources development service industry chain (2021-2025);

★Building the international marine energy economy headquarters center (2026-2035).

The existing projects include Macun Terminal Phase II project, Macun Terminal Phase III container project, CNOOC Western South China Sea oilfield Hainan port project and CNOOC Hainan Macun wharf rear land expansion project, CNOOC Hainan Macun wharf logistics support service base, offshore oilfield science and technology environmental protection and engineering service project, Hainan Jinchang modern logistics center (phase I) project, and Jingdong Chengmai e-commerce logistics industry Park and operation settlement center project.

4. Goals and Targeted Investors

(1) Goals

By 2025, to establish the marine energy development talent education and training center and build Chinese marine resources development innovation technology industry center, which relies on the Old City Development Zone, with the industrial direction of deep-sea resources exploration and development, intelligent deep-sea robot research and integration, marine environmental protection. In collaboration with the oil & gas service core area, forming a research and production integration center for marine exploration and development. By 2035, the South China Sea marine resources exploration and development center and world-class oil & gas service base will be completed. Introducing the world-leading oil companies, oil & gas service companies, and oil & gas-related commercial and financial high-end service companies to set up headquarters for the South China Sea and ASEAN region in the Old City Development Zone, attracting the world's top marine science and technology talents to stay, and becoming an important energy economic hub of China-ASEAN region.

(2) Targeted Investors

★Technical Engineering Service Companies, such as geophysical prospecting, well drilling and completion, offshore platform construction, equipment maintenance and repair.

★Logistics Support Companies, such as helicopters, supply ships, vehicle rental services and logistics supplies.

★Financial and Professional Service Companies, such as banks, financial lease, insurance, law, exhibition and outsourcing service, provide professional service support for the prospective and development of leading enterprises.

★Domestic and Foreign Fixed-point Mooring, dynamic positioning, unmanned ship driving, UAV detection, deep-sea robot operation, big data marine application, marine environmental protection, and other cutting-edge scientific and technological research and development institutions.

5. Analysis of Strengths

(1) Preferential Policies

The "Zero Tariffs, Low Tax Rate and Simplified Tax System" tax arrangement of Hainan free trade port will effectively reduce the operating costs of enterprises and facilitate enterprises to recruit high-end talents. The most open policy will be implemented in the management of capital, personnel and goods flows.

(2) Unique Geographical Advantage

Hainan is located in the center of international logistics. Moreover, Hainan is a critical node of the maritime Silk Road, with two vast markets of domestic and the countries along the “One Belt, One Road.” It can build up two “dual-way valves” of international and domestic markets and a high-level open space for the collection of advanced resources at home and abroad, which provides huge market potential for the development of Chengmai oil & gas exploration and production service base in Hainan.

(3) Business Environment Advantage

Chengmai County Government has formulated the system of the joint conference for communication with companies and the system of leading cadres contact directly to serve the enterprise. It has established and implemented a "four ones" investment promotion mechanism with one vital industry, one leader, one leading department and one investment promotion team. It has actively provided policy information for the project corporations, bank enterprise docking, industrial upgrading and other comprehensive services and provides links and support services for the project and the layout of advantageous local industries.

(4)  Site Selection Advantage

Macun Terminal in Chengmai oil and gas exploration and production service base is a natural deep-water port and one of the 25 hub terminals in China. It can arrange 65 berths of 10,000-ton deep-water with an annual throughput capacity of 300 million tons. It is an essential support for Hainan to deepen its opening-up and develop export-oriented economy. It is positioned as the core port economic functional zone of Hainan free trade port and the largest cargo in northern Hainan Port of shipment. At present, the first and second phase expansion projects have been completed and put into operation, and the third and fourth phase projects are undergoing preliminary planning adjustment. The first phase has been built into the CNOOC South China Sea logistics service base, which mainly provides equipment and leasing services of storage yard and offshore oil logistics services. The second phase terminal has seven berths, mainly providing cargo import and export services. After the completion of phase III and IV of the project, a maximum of 200,000 tons of ships can be allowed to berth. It provides necessary conditions for the berthing of oil service vessels, the entry and exit of oil service production equipment, and the logistics support and maintenance of oil service. Meanwhile, Chengmai oil and gas exploration and production service base is surrounded by developed transportation system, which is in the Haikou "half an hour economic circle." Professionals in related service industries can enjoy the superior education, medical and living supporting resources of the old city development zone and Haikou City, which can provide strong guarantee for the cultivation of relevant talents.

Figure 1: Project site selection

6. Project Planning and Supporting Facilities

(1) Current plot

The site selection of the Chengmai oil & gas exploration and production service base includes the Macun port area and its rear hinterland. The scope of the project is north to wharf of Macun Terminal phase II，south to Guihua Road, east to Jinma Avenue and west to the Macun Terminal phase III. The total area is 8355 mu, around 5.57 square kilometers, which can meet the land demand of oil service base. If further land demand in the follow-up development of the oil service base is required, it can be expanded in the east-west direction.

(2) Surrounding construction and urban supporting facilities

Relying on multiple modes of transportation, the traffic support system of seamless transfer is constructed. The "Five networks" infrastructure supporting facilities are completed and providing a 5G upgraded network package.

(3) Mechanism guarantee

Setting up a special working group of Chengmai old city oil & gas service base to carry out a preliminary investigation, preparation of planning, sequence design, etc., and formulate detailed rules for project implementation

Contact

Investment Promotion Bureau of Chengmai County

Tel: 0898—67606037