Keppel seals $175m deal with Seadrill

This latest order for a semisubmersible drilling tender brings Keppel's order book t a whopping $9.9billion.

DMG says the outlook for the offshore marine sector remains robust current high crude oil prices are significantly above the investment threshold of major exploration and production companies.

Here's more from DMG:

Adding a new contract to its backlog; re-iterate BUY. Keppel announced that they have secured a US$142m (S$175m) order for a semisubmersible drilling tender from Seadrill. We estimate that total YTD order wins climbed to S$6.8b and outstanding order book is now at S$9.9b. We think Keppel is on track to hit our full-year new order forecast of S$9b.

Repeat unit for a long standing customer. The award-winning KFELS SSDT 3600E drilling tender will be the eighth drilling tender ordered by Seadrill since the design was first delivered in 1994. The latest drilling tender is expected to be delivered in 2Q13. We expect margins to be in the mid teens for this unit.

Key risks to our recommendation are: (1) project execution risks; (2) decline in crude oil prices below the investment threshold of oil majors at around US$75/bbl; (3) deterioration in newbuild financing.

Also Read

Mooreast subsidiary, NTOU sign MoU for marine energy research

Surbana Jurong and Hyundai partner to develop Small Modular Reactors

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit

Top News

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

6 days ago

SBR 4 Lorem Ipsum [8 May Top Stories]

6 days ago

Vibrant Group wins suit against Blackgold Australia

The group shall be paid damages and fees by Blackgold Australia’s ex-CEO and ex-chairman.

Lorem Ipsum text in year 2025

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.

Agribusiness