It is reported that Jiangsu Rongsheng Heavy Industries Group Co Ltd began building CNOOC 201, a deepwater pipe laying and lifting vessel for China National Offshore Oil Corporation in Rugao Port of Nantong City in Jiangsu Province on September 16th 2008.

CNOOC Engineering plans to input CNY 15 billion in construction of a series of deepwater equipment including deep sea drilling vessels, ready to focus on deepwater prospecting, since most of the country's newly discovered oilfields are deep undersea.

Mr Chen Qiang Board Chairman of Jiangsu Rongsheng said that the exploitation costs for offshore oilfields tend to increase and a sea approach oilfield may cost USD 20 billion now, which brings a big opportunity for offshore engineering.

He said that the biggest benefit of investment in offshore engineering is that the field will not be affected by market volatility. According to South Korean companies' experience, the gross margin of offshore engineering reaches up to 30%, while that of China's domestic shipbuilding industry has only hit 18% to 19% since the beginning of 2008.

Offshore engineering has relatively strict requirements in technology research and development. CNOOC 201 is China's first self designed and built offshore oil exploitation equipment working 3,000 meters undersea.