Amid oil price slump, Keppel, Nam Cheong pick up new orders

Locally-listed Keppel Corp and Nam Cheong announced new orders on Monday (Dec 29), indicating continued demand for vessels used in oil exploration and production despite the recent sharp drop in oil prices.

Keppel, the world’s largest builder of offshore oil rigs, said Keppel AmFELS – a US-based subsidiary of Keppel Offshore & Marine – won a contract valued at over US$100 million (S$132.3 million) to build one of the world’s largest land drilling rigs.

Keppel did not identify the buyer but said the rig, scheduled for delivery in mid-2016, will be capable of operating in harsh conditions.

Separately, Singapore-listed but Malaysia-based Nam Cheong said it sold two vessels, including a platform supply vessel in deals worth about US$45 million. The buyer of the platform supply vessel is EA Temile Development Company of Nigeria.

Said Nam Cheong CEO Leong Seng Keat: “Despite the recent volatility in global oil prices which has affected investor sentiments across the industry, the securing of these orders from our repeat customers evidently reveals the continued interest in oil and gas activities.”

Crude oil is currently trading near five-year lows, having fallen about 50 per cent from the recent peak.
Source: CNA