Why analysts predict rig prices to balloon in the next 3 years

Is it because of rising competition?

According to Maybank Kim Eng, despite rising threats from Chinese and Korean yards, analysts hold the view that Singapore yards have unique niches to defend against these competitions while they move up the value chain.

They said they expect Keppel and SMM to secure a combined SGD11b in new offshore orders in FY13F (SGD8b in FY12 excluding Petrobras related orders). More importantly, we argue that despite the impending competition, average rig prices would hold up and even rise in the next 3 years.

Here's more from Maybank Kim Eng:

The surprise upside in jackup orders in the first half of the year would only serve to boost the impending cycle. Next in play would be the return of more semisub orders following heightened deepwater activities.

Major drillers echoed a consistent positive outlook in their 1Q13 results commentaries. While oil price may see some near-term volatility, we believe that it would be sustained above the crucial USD80/bbl level which is economically viable for most offshore oil and gas projects.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia