Keppel Offshore and Marine says it is not too worried about the recent sharp drop in oil prices. That is because its current bulging order book is sustainable for at least the next four years, and is still winning orders with another two contracts on Thursday worth a total $210m for offshore vessels.
Keppel Offshore and Marine is the world’s leading builder of jack-up rigs and other maritime gear, and despite crude prices falling from their peak, global oil companies are still stepping up deep water exploration and production activity the world over.
“It’s hovering around the US$60 mark. That is high. So long as it doesn’t go down to US$18, it’s sustainable. The order book will see us through at least another 4 years, maybe longer,” said Charles Foo, Managing Director, Keppel Offshore and Marine.