Douglas-Westwood: 'Offshore EPC - All Change'

Douglas-Westwood, a UK-based headquartered provider of energy business strategy, research and commercial due-diligence services, discusses "Offshore EPC - all change" in the latest edition of DW Monday.

Singapore has traditionally been regarded as the clear leader in the construction of jackups, accounting for 55 percent of global deliveries between 2000 & 2010. However, in the past five years this position has faced increasing challenge from Chinese yards willing to offer highly attractive financing in order to secure market share – China currently accounts for 47 percent of the orderbook compared to Singapore’s 33 percent. With this trend expected to continue, Singaporean yards have been aggressively pursuing higher value EPC markets signalled by Keppel’s Can Do (UDW drillship) project, which when completed will be arguably the most technically advanced asset of its kind. Both Keppel and Sembcorp have also made major investment in their FLNG capability. 

We do not expect Singapore to completely retreat from the jackup market. However, this focus on frontier EPC segments is both a clear reaction to the inevitable rise of China (in what was considered “their” business) and a warning shot to South Korean dominance in both drillships and FLNG. The South Korean big three of Samsung, Hyundai & DSME have all struggled in recent years with balancing their traditional efficiency in light of a tighter price environment (see the earlier DW Monday on Capex Compression) and a shift away from heavy construction seems likely as suggested by SHI’s recently announced merger with Samsung Engineering.

The offshore EPC landscape is undoubtedly going through some regional realignment.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Insulator
Expertise: Pipeline Services|Piping Technician
Location: Prudhoe Bay, AK
 
Senior Substation Engineer
Expertise: Engineering Manager
Location: Florida, FL
 
Operator, Pipeline (Crude)(12 hour Rotating Shift) Freeport
Expertise: Instrumentation Technician
Location: Freeport, TX
 
search for more jobs

Brent Crude Oil : $55.23/BBL 0.46%
Light Crude Oil : $52.75/BBL 0.62%
Natural Gas : $3.24/MMBtu 1.25%
Updated in last 24 hours