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
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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