What Drives Offshore Rig Construction Market?

The exploration & production (E&P) activities monitor the available hydrocarbon reserves to extract petroleum resources. There are comparatively less number of offshore rigs constructed in the world as compared to onshore rigs. The water depth, harsh climatic conditions such as tidal motions, hurricane and storms followed by the urge to drill deep make offshore drilling more hazardous. The construction of offshore rig initiates with contract orders for newbuild rigs. The rig construction companies receive the contracts when the reserve discoveries reach final investment decision (FID) stage. The construction cost for an offshore rig depends on the capital expenditure for procurement of equipments, rig kit, raw materials including steel and labor conditions. The drilling contractors and service providers maintain a rig fleet through rig deliveries from different rig constructing companies.

Offshore drilling signifies wellbore drilling in the rock formations beneath the seabed. Offshore oil and gas production is more strenuous and challenging than onshore drilling due to the remote and harsher environment. There are several shipyards around the world that build offshore rigs. However, most of the major yards are in Southeast Asia and the Far East region while other facilities are located in Middle East and Brazil. Keppel Offshore & Marine in Singapore is the leader in offshore rig building across the globe.

“The offshore drilling activities are regulated with the hydrocarbon potential in a peculiar geographical location. The urge for energy is persuading contractors and oil & gas E&P companies to find hydrocarbons in deepwater offshore locations. The offshore oil represents nearly one-third of the total global oil production. Technological breakthroughs are necessary in drilling techniques to develop huge conventional and unconventional resources. The offshore production is affected by the technological capabilities of an offshore rig. Hence, there is a need for the construction of state of art technology drilling rigs to facilitate the same. The rig utilization rates and day rates are the prime factors which are likely to drive the global offshore rig construction industry in the forthcoming years. The prospects for feasible hydrocarbon production from offshore locations will affect the demand-supply scenario of offshore rigs worldwide.” - According to the Research Analyst, Ken Research.

The report titled “Global Offshore Rig Construction Market Outlook to 2018- Rising Energy Demand & Deepwater Drilling Activities to Intensify the Market” provides detailed overview on global offshore rig construction market and helps reader to identify the ongoing trends and developments in the rig construction industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will aid industry consultants, rig construction companies, drilling contractors, marketing companies, E&P companies other concerned upstream companies, consumers and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.