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Southeast Asia Rig Market Challenge - 1 views

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    By 25 active operators in Southeast Asia with 46 rigs, the contracting conditions have been challenging due to the collapse in crude oil prices while exploration and production spending have pressured both utilization and day rates in the region INTRODUCTION Southeast Asia is rich with hydrocarbon resources. The region is made up of Brunei, Burma, Cambodia, Timor-Leste, Jakarta Indonesia, Laos, Malaysia, Papua New Guinea, Singapore, Thailand, and Vietnam. According to Shell, the Indonesia oil industry and what subsequently became Royal Dutch Shell are closely connected. Shell discovered commercial quantities of crude oil in Sumatra just over 100 years ago. Moreover, Shell was the first to bring a drilling rig to the region and the first to discover oil off of Brunei in 1958. Today there are about 25 operators active in Southeast Asia with 46 rigs (Jack Ups, Semis and Drillships) currently contracted. Forty one of the contracted rigs are drilling, and five are waiting on location or in shipyards. In addition to the rigs that are contracted in the region, there are eight cold stacked units, nine ready stacked units, and one unit in the shipyard without a contract for a total supply of 64 rigs. Thus, total utilization in the region is 72% and ready utilization is 84%. While indications are that Jack-Up Market fundamentals have begun to stabilize. Southeast Asia only has eight semisubmersibles actively drilling in its waters (one other is contracted but not currently working). Four are off Malaysia, two are off Vietnam, one is off the Jakarta Peninsula, and another is off Myanmar. However, the drilling Jack Up count is significantly higher at 31 (four others are contracted but not currently working). Malaysia has the highest Jack Up count at twelve, followed by Vietnam with seven, Thailand with five, Indonesia with four, Brunei Darussalam with two, and East Timor with one. There are also two Drill ships working in the region. One is off Malaysia and the other is of
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