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Navigating challenges and seizing opportunities:
Fishbones' journey in China’s oil and gas market

13 June 2023

Commentary by Sandy Liu, Business Development Manager, China

As the Business Development Manager for Fishbones in China, I have had the privilege of witnessing the challenges and opportunities that come with establishing our presence in the country's oil and gas market. China, being the fourth-largest oil producer globally, faces a significant gap between demand and production. With around 70-80% of its oil and gas requirements needing to be imported*, there is a clear opportunity for Fishbones to contribute to meeting China's growing energy needs.


Seizing the opportunity in China's high demand for oil and gas

One of the most significant opportunities lies in the high demand for improved technology to enhance oil and gas production within China. Fishbones stimulation technology, renowned for its ability to connect reservoirs, has the potential to address this need. We are excited about the prospects of capturing a substantial market share by offering a solution that precisely meets Chinese customers' requirements.


Building relationships based on mutual trust and understanding is crucial for success in China. We have been actively approaching key players such as CNOOC, CNPC, and SINOPEC, as they not only dominate the China market but also control external businesses. Our strategy of targeting both the domestic market and their international operations is a win-win situation. By demonstrating our commitment to meeting customer needs and providing a cost-effective technology, we aim to secure long-term partnerships that will be instrumental in expanding our presence both inside and outside of China.


Challenges on the path to success in China's oil and gas market

Entering the Chinese market is not without its challenges. The main difficulty is ensuring that our technology meets the specific requirements and preferences of Chinese customers. We also face competition from local companies that offer alternative technology at lower prices, often because they have the advantage of local manufacturing.


While our technology stands out in terms of precision and its ability to adapt to different soil compositions, we need to continuously highlight our unique value. It is crucial for us to educate our clients and potential customers. By explaining the long-term cost-effectiveness and lower CO2 emissions of Fishbones technology, we can address the misconception that conventional methods are cheaper (considering additional costs like pumping and handling returning fluids, for example).


Building strong relationships and expanding Fishbones’ presence in China

We are proud to say that our presence in China is steadily increasing, from the first onshore and offshore installations in in the country in 2018 and 2019, respectively, attracting interest not only within the country but also from other locations. Our current work in China, set to be delivered this November, has already garnered attention from major companies like CNOOC, CNPC, and SINOPEC. While our focus is not limited to the Chinese market alone, we are also targeting these companies' external business possibilities. This strategic approach allows us to capitalize on Fishbones’ presence and potential, both inside and outside of China.

While developing new relationships, we are also committed to maintaining and improving existing ones. By nurturing these partnerships and demonstrating our value, we enhance the chances of our technology being embraced and utilized. Building relationships based on mutual trust is important to our success in China and enables us to provide our customers with reliable and efficient solutions.

Looking ahead, Fishbones’ future in China is filled with potential. We are not only focused on increasing our sales and market share but we are also exploring opportunities for local manufacturing to reduce costs in the long run. Additionally, we see a promising opportunity in geothermal applications in China. The Chinese government’s agenda prioritizes a shift towards clean energy and Fishbones' versatile technology can play a crucial role in establishing deep geothermal connectivity across various rock types.

In conclusion, Fishbones’ journey in China's energy landscape is both challenging and promising; and I’m glad to be a part of it. By addressing technical requirements, showcasing our value proposition, and fostering strong relationships, we are confident in our ability to establish a significant presence in China's energy landscape. The synergy between our technology and China's energy demands positions us as a strategic partner for sustainable growth in the years to come.



*Source: Reuters  - article “China set for record crude oil imports in 2023, analysts say”

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