You are here

China competes with offshore-rig champions South Korea

13th July 2012

Offshore-rig giants in Singapore and South Korea face stiff competition from Chinese firms

China competes with offshore-rig champions South Korea
Chinese yards secured nine of the 26 orders for all rig types placed in the second half of last year, outshining both South Korea (8) and Singapore (5).

China is emerging as a strong competitor in the offshore-rig sector as local firms weigh in on an exploration sector conventionally dominated by Singapore and South Korea.

Reports show Chinese yards secured nine of the 26 orders for all rig types placed in the second half of last year, outshining both South Korea (8) and Singapore (5). Of these, 14 were jack-up rig orders, a sector in which China has a considerable edge.

Starting jack-up rig manufacturing in 2005, China’s competitive prices have since allowed it to boost its costumer base in the international market, securing a fifth of the USD 72bn in orders placed.

Shipbuilder COSCO Corp, subsidiary of China Ocean Shipping (Group) Company, is one of the companies carrying the Chinese rig banner in its mounting stride through the sector. It currently operates seven yards in China.

COSCO has so far secured four ultra-deepwater rig orders from Norway-based oil service firm Sevan Drilling, two of them already delivered and estimated at over USD 1 bn.

China expects to boost its share of the global offshore energy equipment industry to 20 per cent by 2015 and to 35 per cent by 2020 from under 8 per cent in 2011, according to reports.  

Related topics: 

Got a news tip? Email news@oilandgastechnology.net