Singapore: Although Chinese rig builders have recently made some breakthroughs in rig building, they still are no threat to Singapore yards, CIMB said in a recent report about the offshore sector.
CIMB points out the rigs which are ordered at Chinese yards including Waigaoqiao and Rongsheng are "either heavily financed or have lower specifications" and heavy financing by Chinese yards is the main attraction for companies to build rigs in China.
"We are not overly concerned by the competition posed by the Chinese for Singapore yards. Traditional drillers with stronger cash flows should still find comfort in Singapore and Korean yards, unwilling to take on risks in quality and delivery," CIMB said. [09/04/13]
