UPDATE 1-Keppel says clients may cancel orders worth S$1.2bln
11/27/2008 6:28:00 PM
SINGAPORE, Nov 27 (Reuters) - Keppel Corp, the world's top offshore oil rig builder, warned on Thursday that three clients may cancel orders worth S$1.2 billion ($794.2 million), a sign companies may hold back on exploration amid falling oil prices.
The contracts, signed earlier this year, involve a semisubmersible for Scorpion Offshore, two jackup rigs for Seadrill and a support vessel for Lewek Shipping, the Singapore firm said in a statement.
Construction work has not yet started on these projects, for which Keppel has received downpayment.
The three firms were reviewing their options on the contracts and the deals may not necessarily be called off, a Keppel spokeswoman said.
Keppel posted a 10 percent rise in third quarter profits and said in October its S$13 billion order book, which stretches to 2013, was robust and well diversified. It said then expansion in rig fleets could be constrained by tight credit.
It benefitted from a jump in oil exploration in recent years, but crude futures prices have slid by almost $100 a barrel since hitting a peak above $147 in July, as the credit crunch and recession fears dent demand and investor sentiment.
(Reporting by Kevin Lim; Editing by Neil Chatterjee) ($1=1.511 Singapore Dollar) Keywords: KEPPEL CONTRACTS/ ([email protected]; +65 6403 5663; Reuters Messaging: [email protected]) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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11/27/2008 6:28:00 PM
SINGAPORE, Nov 27 (Reuters) - Keppel Corp, the world's top offshore oil rig builder, warned on Thursday that three clients may cancel orders worth S$1.2 billion ($794.2 million), a sign companies may hold back on exploration amid falling oil prices.
The contracts, signed earlier this year, involve a semisubmersible for Scorpion Offshore, two jackup rigs for Seadrill and a support vessel for Lewek Shipping, the Singapore firm said in a statement.
Construction work has not yet started on these projects, for which Keppel has received downpayment.
The three firms were reviewing their options on the contracts and the deals may not necessarily be called off, a Keppel spokeswoman said.
Keppel posted a 10 percent rise in third quarter profits and said in October its S$13 billion order book, which stretches to 2013, was robust and well diversified. It said then expansion in rig fleets could be constrained by tight credit.
It benefitted from a jump in oil exploration in recent years, but crude futures prices have slid by almost $100 a barrel since hitting a peak above $147 in July, as the credit crunch and recession fears dent demand and investor sentiment.
(Reporting by Kevin Lim; Editing by Neil Chatterjee) ($1=1.511 Singapore Dollar) Keywords: KEPPEL CONTRACTS/ ([email protected]; +65 6403 5663; Reuters Messaging: [email protected]) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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