Singapore: It has been a very busy year for Singapore offshore operator Swissco Holdings with the acquisition of rig operator Scott and English Energy for S$285m. The deal means Swissco now has nine jack-up rigs to go with its 34 OSVs. There are another three more OSVs set to deliver soon too.
Alex Yeo, the company’s ceo, explains the rationale for the rig company buy.
“There are synergies that could be achieved with the acquisition,” he says. The group has since captured various opportunities in the offshore oil and gas industry as it penetrates the upstream market across different geographical regions.
Going forward the group will look to continue to increase its fleet size and extend its reach globally. Potential areas of deployment include the Middle East, Yeo says, and should opportunities arise elsewhere, they will definitely be taken into consideration, he adds.
On the markets, Yeo concedes, “Analysts and industry watchers have cautioned that the sector could face challenges with overcapacity and falling oil price.”
Typically, major oil producers would look to cut back on spending, which may exert pressure on the deepwater segment, as it is more costly, he points out. Fortunately for Swissco, its drilling and service assets are for shallow waters and the majority of them have firm long-term contracts with a national oil company as its end client.
“We are confident that our strong fundamentals and unique business model will enable us to remain resilient,” Yeo concludes. [21/11/14]