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SINGAPORE SHIPREPAIRING, SHIPBUILDING & OFFSHORE INDUSTRIES DIRECTORY 2020/2021
The trend is for continuously larger wind turbines to be placed further out to sea, making the entire support and installation infrastructure more complex. These developments bode well for shipyards and service providers to windfarm operators.
with Danish renewable company, Ørsted, to produce offshore wind farm substations.
OFFSHORE MAINSTAYS STAY THE
COURSE
Sembmarine has capped off 2019 with exciting contract wins to provide offshore infrastructure to the Whale, Al Shaheen and Tyra elds. The Whale Field project is its second contract from Shell in two consecutive years. Keppel O&M completed and delivered a series of rigs to several repeat clients.
The COVID-19 pandemic has shattered demand for oil and plummeted prices to historical lows. At current prices, exploration and production companies have little economic incentive to search and drill for oil. Around the world, customers have cut down on their capital expenditures and a wave of project cancellations have created a gloomy credit outlook for offshore companies including our own.
Based on IEA Oil Market Report (OMR) April 2020, global capital expenditure by exploration and production companies in 2020 is forecasted to drop by about 32% versus 2019. A report by Baker Hughes in April 2020 shows that the number of active rigs drilling oil around the world fell by 29 per cent in April year-on-year. OECD has also warned that global growth is set to weaken this year and only recover gradually in 2021. However, the gradual reopening of large economies has lifted sentiment, creating expectations that oil demand will eventually increase. This cautiously optimistic outlook gives reasons for yards to anticipate the normalisation of capital expenditures on rigs and submersibles in 2021.
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