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FIRST

Fracking good news for Singapore’s rig builders

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ith all the talk of the growth in American fracking one could be forgiven for thinking that offshore drilling was taking a back seat in the quest for oil. That couln’t be further from the truth, with recent research from Barclays suggests that offshore drilling could rise a further 60 % by 2015. That is great news for Singapore’s two largest builders of floating rigs, Sembcorp Marine and Keppel, who should see orders for their semi-submersibles and jack-ups rose by 60 %. Half of all jack-ups currently being built in the world

are being fabricated in Singapore, and despite the emergence of cheaper Chinese shipyards which had been expected to offer stiff competition, so far “quality over quantity was a clear preference for all of the established players” at the Barclays Energy conference held in September last year. Safer than sorrier Perhaps its not surprising because when things do go wrong, as with Deepwater Horizon, the costs of clean up and compensation can be huge. In offshore drilling, being safer than sorrier is the order of the

Retail Watch:

The Black Label opens new flagship boutique in Singapore

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he Black Label’s 700 sq. ft. shop located at One Raffles Place Tower 2, Unit 01-61, One Raffles Place, carries off-the-rack Italian brand shirts, jackets, hand embroidered shirts as well as accessories such as handmade shoes, premium ties and quality belts. The Black Label carries high quality Italian labels such as Poggianti and Montezemolo, among others. Off-the-rack shirt prices start at SGD189. The brand’s essential product is its bespoke tailoring services and its high quality suits and shirts using only fabrics from the top mills of Italy. Made-to-measure shirts can be made in two weeks while suits take three weeks to complete including one fitting. Clients can choose from over 4,000 fabric choices as well as different permutations such as collar styles, cuff designs, and buttons. Madeto-Measure Suit prices start at SGD900.

16 SINGAPORE BUSINESS REVIEW | FEBRUARY 2012

day and that explains the strength of the Singapore opportunity. Recent exploration successes have been made in many deepwater basins, particularly in the ‘Golden Triangle’ of Brazil, the US Gulf of Mexico and West Africa. Deepwater production will be the main driver of offshore production growth in the next two decades, and that means more rigs. The high utilisation and day rate premium for younger vessels continues to incentivize rig-owners to upgrade and refurbish their rigs. With 55 jack-ups expected to be delivered this year, 2013 is on track to record the highest number of jack-up deliveries in the past 30 years. But even after accounting for the 80 deliveries by 2015, more than half of the world’s jack-up fleet will be over 30 years old. The outlook is also good for semisubmersibles. Based on current orders, there are only 17 semi-subs expected to be delivered over the next  five years.

With 55 jackups expected to be delivered this year, 2013 is on track to record the highest number of jack-up deliveries in the past 30 years.

Jack-up deliveries Jack-up deliveries 60

No. of rigs

50 40 30 20 10 0

Source: ODS-Petrodata, Barclays Research estimates

Source: ODS-Petrodata, Barclays Research estimates

No orders for jack-ups placed for delivery beyond 2015 yet

Singapore Business Review  
Singapore Business Review  

February-March 2013 issue

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