Newbuilds, regionalism among factors distorting Asia Pacific rig market

The offshore rig market is showing signs of recovery, but major challenges remain. Teo Yun Yun, Principal Analyst for Rigs in the Asia Pacific for IHS Markit, noted that oil prices are likely to stay relatively strong in the near future, which will lead to an increase in the number of projects sanctioned and more demand for drilling rigs. However, the rig oversupply challenge has not been resolved, even as approximately half of today’s working fleet are still over 30 years old. At the 2018 IADC/SPE Asia Pacific Drilling Technology Conference on 28 August in Bangkok, Ms Teo spoke with DC Managing Editor Linda Hsieh about the state of the rig market, as well as how newbuilds and regionalism are distorting the market in this region. Watch the video to find out more.