As the world's biggest offshore rig builder by volumes, Keppel Corp. is continuing to get enquiries for new vessels after its orderbook hitting new high record this year.
"You can't control the world financial system and markets, but so far, enquiries are still active, and that augurs well for us," says Tong Chong Heong, the chief executive officer of Keppel FELS, “the current global oil prices remain supportive of investment in exploration and production” Keppel indicates.
According to Tong Chong Heong, the current downturn in the global economy, the sovereign debt crisis in Europe even together with a slowing U.S. economy haven't reduced demand for energy and current global crude oil prices are high enough for investors in the sector.
Tong disclosed that they haven’t taken too many speculative orders for all its customers have been players in the drilling business. "Fortunately for us, all the orders that we have are bona fide customers. There really have been no speculators building rigs. We are very careful who we build for," he said.
According to him, worldwide drilling companies are still making money, which is a "positive sign” for all the bulkders.
Keppel has received orders worth S$9 billion so far in 2011, taking total orders in hand to S$10 billion, which will keep its yards busy till the third quarter of 2014.
Brazilian national oil company Petroleo Brasileiro SA or Petrobras is spending nearly US$225 billion till 2015 to raise its oil production. Keppel has expressed its confidence in this project tender.