Shanghai: China has overtaken Singapore as the world’s biggest builder of jack-up rigs, with 47% of the global orderbook compared to Singapore’s 33%.
Between 2000 and 2010, yards in Singapore built 55% of global deliveries of jack-up rigs, according to research by Douglas-Westwood.
The research group said Chinese yards had secured their market share by offering clients highly attractive financing packages.
Singapore yards have countered this by pursuing higher value EPC contracts such as Keppel’s ‘CAN DO’ drillship project, which will be the most technically advanced asset of its kind.
The city-state has also secured high-value contracts for construction of floating LNG (FLNG) units for both Keppel and Sembcorp.
“We do not expect Singapore to completely retreat from the jack-up market. However, this focus on frontier EPC segments is both a clear reaction to the inevitable rise of China (in what was considered ‘their’ business) and a warning shot to South Korean dominance in both drillships and FLNG,” Douglas-Westwood said of the Singapore market in a release.
A tighter price environment has hit South Korean yards’ market share. Douglas-Westwood says that a shift away from heavy construction in the country seems likely, as suggested by Samsung Heavy Industry’s recently announced merger with Samsung Engineering. [21/10/14]