Keppel Sees Shallow-Water Projects Supporting Rig Demand amid Lower Prices

Keppel Sees Shallow-Water Projects Supporting Rig Demand amid Lower Prices
Keppel believes oil production in shallow-water basins will support rig demand, but revenue diversification is key to ride out the low oil price environment.

Singapore’s rigbuilder Keppel Offshore & Marine chief executive Chow Yew Yuen believes there are still pockets of demand for oilfield services in shallow-water reservoirs where hydrocarbon production remains economical at a fraction of the current oil prices.

With oil price falling drastically within a span of four to five months from $100 to under $50 a barrel at the turn of the new year, Chow acknowledged global exploration and production activity will slow as oil and gas companies look into cutting capital expenditure

Keppel Sees Shallow-Water Projects Supporting Rig Demand amid Lower Prices
Chow Yew Yuen, CEO of Keppel Offshore & Marine Source: Keppel Corp.

“Some projects will move to the right [or be] put on hold,” Chow told reporters, citing projects in the deepwater basins as potentially among those coming under review.

That will potentially include Petrobras’ pre-salt discoveries off Brazil as other industry sources have indicated.


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