CIMC “BLUEWHALE 1” Drilling Platform Procures China’s First Success in Trial Mining of Seabed Combustible Ice

Minister of the Land and Resources Jiang Daming declares the success of trail mining.

"China successfully extracted natural gas hydrate at sea for the first time,” Minister of the Land and Resources Jiang Daming announced on the “BLUEWHALE 1” drilling platform operating in the Shenhu area of the South China Sea on May 18, 2017. This means China becomes the first country in the world that has mastered the natural gas hydrate (also called “combustible ice”) mining technology, marking a milestone in safeguarding China’s energy security and optimizing energy structure. Gao Yu, Director of the Supervision and Inspection Office of the General Office under the State Council, delivered a congratulatory message from the CPC Central Committee and the State Council on the ceremony.

Gao Yu, Director of the Supervision and Inspection Office of the General Office under the State Council, delivers a congratulatory message from the CPC Central Committee and the State Council.

The “BLUEWHALE 1” drilling platform, which undertook such a strategic mission to mine combustible ice at sea successfully, is the most advanced ultra-deepwater dual-rig semi-submersible drilling platform in the world. It is independently designed and constructed by CIMC Raffles Offshore Limited (short as “CIMC Raffles”) and jointly operated by Tianjin TEDA Bluewhale Offshore Engineering Technology Co., Ltd. and China National Petroleum Offshore Engineering Co., Ltd based on an operation service contract.

Release flare ignited by natural gas hydrate (or combustible ice)

The officials and leaders present on the ceremony also included, among others, Liu Wei, Vice-Minister of Finance, Zhong Ziran, Party member of the Ministry of the Land and Resources and Director General of China Geological Survey, Li Chunsheng, Vice-Governor of Guangdong Province, Wang Yilin, Chairman of China National Petroleum Corporation (CNPC), Wang Dongjin, Vie-President of CNPC, Han Shui, Chief Engineer of National Energy Administration, Shi Qingfeng, Deputy Director General of the State Oceanic Administration, Li Jinfa, Deputy Director General of China Geological Survey, CIMC CEO & President Mai Boliang, Vice-Presidents Yu Ya and Li Yinhui, CIMC Raffles President Wang Jianzhong and Vice-President Liu Yanjia.

China Overfulfills the Projected Goal of Combustible Gas Trail Mining, Becoming the World’s Frontrunner in Combustible Gas Exploitation and Development

China Geological Survey (CGS), under the Ministry of the Land and Resources, was in charge of the trail mining of natural gas hydrate in the Shenhu area of the South China Sea. Under the leadership of the CPC Central Committee and the State Council, with the high-level supports from the Ministry of Finance, the National Development and Reform Commission and the Ministry of Science and Technology, and in collaboration with CNPC, CIMC Raffles and other units involved, the CGS extracted natural gas hydrate from the deposits in the Shenhu area of the South China Sea, drilling 203-277 meters below the depth of 1,266 meters underwater.

Officials and leaders visit the project site and watch the release flare

Ye Jianliang, the field superintendent of CGS natural gas hydrate trial mining project, reported on the ceremony dated May 18 that the trial mining of natural gas hydrate in Shenhu area of the South China Sea officially commenced on Mar. 28, 2017 and the flare was ignited at 2:52 p.m. on May 10 after more than 40 days of hard work day and night. By 3:00 p.m. on May 17, the accumulated gas output had reached 113,200 cubic meters. The average output a day is about 16,000 cubic meters, and the highest output in one day is 35,000 cubic meters. 99.5% of the gas extracted is methane. The trial mining is carried on as planed with stable output, and the projected goal of extracting natural gas hydrate for one week continuously with a daily output of 10,000 cubic meters has been overfulfilled.

This is China’s and also the world’s first success in mining muddy silt type natural gas hydrate in a safe and controllable manner. Muddy silt type natural gas hydrate is a kind of mineral resource that accounts for 90% of world resources and is most difficultly exploitable. The success of this project accumulates solid technical reserves and valuable experience for commercial development and exploitation of natural gas hydrate, changes China’s role as a follower in energy exploration and exploitation, realizes independent innovation of theory, technology, engineering and equipment, makes the historical leap from a “follower” to a “leader” in this field, and have important and profound implications for guaranteeing energy security, promoting green development and building a maritime power.

Zhong Ziran said on the launching ceremony on Mar. 28 that to propel the exploration and commercial trial production of natural gas hydrate has been included as one of the Prioritized Energy Development Programs in China’s 13th Five-Year Plan on National Economic and Social Development. The trial mining of natural gas hydrate at sea is of vital importance to the nation's economy and the people's livelihood, and it is pinned expectations of the country and people. The successful trail production of natural gas hydrate will lay a solid foundation for China to usher in a new era of energy utilization and create historical opportunities. The CPC Central Committee, the State Council and the Ministry of the Land and Resources expressed their high regard and have given several instructions on this issue.

Zhong Ziran further pointed out that the successful trial mining of natural gas hydrate is of great importance. The trail mining is a key initiative for China to build a maritime power and a sci-tech power and to implement the land resource sci-tech innovation strategy highlighting “deep-ground survey, deep-sea exploration and deep-space earth observation”, and it is the touchstone of the achievements already made in scientific and technical innovation. To execute the strategy of building a maritime power and that of reinvigorating China with science and technology, we must develop the ability of deep-ocean exploitation to make clear the value of natural gas hydrate resources and safeguard the State’s maritime sovereignty. Trail mining can not only help us examine the scientificity of the theory, technology and equipment system established early but also push forward the commercial exploitation of natural gas hydrate resources with the aid of deep-sea accessing, exploration and development technologies mastered in large-scale, multi-discipline and demanding technical problem solving projects. The successful trail mining of natural gas hydrate will be the first battle of solving technical problems that opens up the second century of course for CGS.

CNPC Vie-President Wang Dongjin added that CNPC highly valued and cherished this opportunity of “being first in China”.

BLUEWHALE 1: the country’s important equipment that extracted combustible ice successfully

The “BLUEWHALE 1” drilling platform that undertook this trail mining mission was independently designed and constructed by CIMC Raffles. On the ceremony held on May 18, CIMC CEO & President Mai Boliang expressed that he was rather proud and excited about this trail mining. He said the “BLUEWHALE 1” drilling platform stood for the highest level of marine drilling platform design and construction in the world, bringing China’s deepwater oil and gas exploration and development ability into world advanced level. Moreover, it is an important practice for CIMC to implement the “Belt and Road” national strategy and fortify the country’s high-end energy equipment strength.

CIMC CEO & President Mai Boliang sends his appreciation and cares to the foreign workers in the pilot’s compartment of the “BLUEWHALE 1” drilling platform.

CIMC Vice-President Yu Ya said the undertaking of such a representative trail mining project by the “BLUEWHALE 1” ultra-deepwater drilling platform independently designed and constructed by CIMC is a special honor granted to CIMC as a Chinese manufacturing business. He added that China National Petroleum Offshore Engineering Co., Ltd on the one side and CIMC Raffles on the other side signed a drilling platform technical service contract for the “BLUEWHALE 1” on Aug. 16, 2016. At 11:00 p.m. on Mar. 6, 2017, upon completion of all the preparedness work for operation, the “BLUEWHALE 1” drilling platform set sail from Yantai and reached the well site after 8 days.

According to information, the “BLUEWHALE 1” of Frigstad D90 design, for which the detailed design, construction design, construction and commissioning were all done by CIMC Raffles, is equipped with a DP3 dynamic positioning system and classed by DNV. With an operational depth of up to 3.658 meters and drilling depth to 15,240 meters, this 117x92.7x118 m (LxWxH) “BLUEWHALE 1” can operate in all global waters and is a semi-submersible drilling platform with the highest operational and drilling depths in the world. Compared with traditional single-derrick drilling platforms, the “BLUEWHALE 1” is provided with double efficient hydraulic derricks and world-leading DP3 dynamic positioning system, improving the operating efficiency by 30% and saves 10% fuel.

The “BLUEWHALE 1” drilling platform was granted the “Best Drilling Technology Award” by World Oil 2014 and the 2016 OTC “Best Design Highlights” in succession. Besides, it was praised by Prime Minister Li Keqiang at the "China Equipment Manufacturing Exhibition" held in Rio de Janeiro, Brazil in May 2015.

"BLUEWHALE 1” has 27,354 sets of equipment, more than 40,000 root pipelines, more than 50,000 MCC inspection points and cable length of 1.2 million meters. As the most advanced generation of ultra-deepwater double-derrick semi-submersible drilling platform, “BLUEWHALE 1” not only outperforms its counterparts in the physical quantities but also overcomes the technical research, project management, global procurement, practical operations and many other challenges in the design and construction process.

CIMC Raffles performed detailed design and basic design simultaneously. It completed the platform design in just 9 months, which was 3 months ahead of the standard design cycle. For the first time, “BLUEWHALE 1” adopted the 100 mm NVF690 ultra thick steel plate and completed the world’s first CTOD experiment, making CIMC Raffles the only enterprise around the globe that succeeded in conducting the experiment and owns such welding capacity. The lean management pattern was employed in the project for the first time, which contributed to a 15% increase in production schedule.

Combustible ice, technically known as natural gas hydrate, is mainly found in permafrost areas or deep-sea sediments at a depth of 900-1,200 meters below sea level. It is an ice-alike crystalline substance generated by natural gas and water under high pressure and low temperature conditions, and it produces a small amount of carbon dioxide and water when combusted. Compared with petroleum and natural gas, combustible ice has such advantages as high availability, high combustion value and cleanliness without pollution. Experts estimate that combustible ice reserves in marine only can be used by human beings for 1,000 years and it is recognized as the alternative energy of natural gas and oil.

Combustible gas has a high economic value and remarkable strategic significance, thus receiving wide concerns from major host countries of resources across the world. China is one of the countries with most abundant reserves of combustible gas resources. In addition to the permafrost areas on the land, the South China Sea holds combustible gas resources up to 70 billion tons of oil equivalent and prospective reserves of more than 100 billion tons of oil equivalent, with a promising exploitation prospect.

Trial mining of combustible gas attracts tremendous attention as a key project to implement the national energy strategy. But its exploitation and exploration requires us to overcome a series of great technical and environmental obstacles. Without well-established technologies, the exploitation and exploration activities may trigger submarine geological disasters and cause lots of seabed greenhouse gases to release into the air which will in turn lead to environmental crisis. Over the years, under the leadership of CGS and with the supports from CNPC and other companies, China has made substantial achievements in combustible gas survey, exploration and trial production technologies.

This successful trail mining of combustible gas is a world-leading movement of great significance. The extraction of combustible gas by the “BLUEWHALE 1” in the South China Sea signifies a major technical breakthrough made by China in this field, paving the way for the commercial development of combustible gas. The event will exert a great influence on our country’s energy structure and contribute to elevating the energy self-sufficiency rate, protecting the energy security and meanwhile mitigating the environmental pollution caused by coal and oil so as to realize the sustainable and balanced development of the economy and society.