Some Asian Drilling Firms Plan to Carve Niches in Current Downturn

Some Asian Drilling Firms Plan to Carve Niches in Current Downturn
While the fortunes of petroleum companies tumble in line with lower oil prices, some Asian drilling contractors hope to carve niches in this adverse business climate.

As the downtrend in oil prices that began sliding in the third quarter of last year shows little signs of recovery, many companies in the petroleum industry are looking into ways of reviving their business fortunes.

Drilling contractors are among those hurt by the downturn in the oil and gas industry as field operators, including independent oil companies and national oil companies, have scaled back on drilling activities, particularly for exploration. Still, some drilling contractors in Asia are scouting for opportunities to carve a niche for themselves in the present industry environment.

Spending cutbacks by the industry are likely to exacerbate the woes faced by drilling contractors, including those in Asia, as dayrates are already under pressure due to an oversupply of rigs, including newbuild jackups from China.

“A number of offshore rigs … delivered in past months have not secured contracts for lease yet,” Captain Wu Zi Heng, vice chairman and president of Cosco Corp. (Singapore) Ltd. said in a Feb. 16 press release announcing the Chinese firm’s 2014 financial results.

Waldie agreed that the glut of rigs on the drilling market has seen “dayrates going down these days ... we are seeing some cold-stacking as well.”

Hess To Form MLP For North Dakota Oil, Gas Transport Assets
Worldwide Rig Utilization, DayRate


123

View Full Article

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.
Phil Miller | Feb. 26, 2015
"We were looking at between a 50 and 70 percent rise in manpower costs every year, Kumar explained" Curious to know about this. This in itself sounds like another great story idea to follow up on.


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

More from this Author
Chee Yew Cheang
APAC Editor | Rigzone
 -  Malaysia's InvestKL Woos Top Oil, Gas ... (Oct 6)
 -  Petrobangla Invites EOIs for 3 Offshor... (Sep 30)
 -  Malaysia's SapuraKencana Posts 7.1% Ga... (Sep 29)
 -  TH Heavy Engineering, McDermott End Pa... (Sep 26)
 -  Singapore's NUS Slowly Builds its Petr... (Sep 26)


Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Senior Accountant
Expertise: Accounting
Location: Houston, TX
 
Functional Consultant Job
Expertise: IT - Analysis & Management|IT - Software Development|Project Management
Location: Denver, CO
 
Project Accountant
Expertise: Accounting
Location: Kennesaw, GA
 
search for more jobs

Brent Crude Oil : $54.94/BBL 0.88%
Light Crude Oil : $51.79/BBL 0.21%
Natural Gas : $3.65/MMBtu 6.10%
Updated in last 24 hours