Why Keppel Corp will benefit most from Mexico's energy reform

All about first mover's advantage.

According to research firm DBS, Keppel Corporation stands as one of the energy companies that will gain the most from Mexico's recent strides in energy liberalisation.

"We believe that the recent approval of energy reform in Mexico will benefit Keppel in the medium term, as an estimated additional 30 drilling rigs would be required for the region if we were to assume that the level of exploration and production matches that in the US GoM," said DBS.

"Keppel has signed an MOU with Pemex to build a pioneering offshore yard in Mexico, and given its established relationship with Pemex and other global operators, we believe that it has a first mover’s advantage," it added.

DBS also highlighted the advantages of the new Mexico yard.

"The yard will be strategically located in the modern Port of Altamira along the coast of the Gulf of Mexico, and will be one of the pioneer yards able to handle sophisticated offshore vessels in Mexico," said DBS.

"The yard will be equipped to undertake certain portions of the work in the construction of jack ups in the first phase, while subsequent phases of development would enable it to take in deep-draft semi-submersibles and drillships for repairs, undertake FPSO and Floating Liquefied Natural Gas (FLNG) vessel conversions, as well as fabricate topside modules and other offshore structures," it added.