Labuan to gain from stacking rigs, vessels

Dateline 2015-06-08, Daily Express:

Though oil prices have inched up to about US$66 (RM235.62) per barrel, they are still 17.5pc below the US$80 per barrel deemed a reasonable level at which Petroliam Nasional Bhd (Petronas) may resume drilling contract awards, especially for marginal fields.

Until then, rigs off contracts and offshore support vessels (OSVs) are making their way to the stacking grounds.

There are 29 O&G companies listed on Bursa Malaysia and many more that are related to the industry. The depressed oil prices have shaved off on average 46pc from stock prices since June last year. The industry is now facing lower corporate earnings and possible loss of jobs due to Petronas’ move to cut capital expenditure and production.

Popular stacking grounds in the region include Johor waters, the Bay of Brunei in Labuan and Batam Island in Indonesia. Sources say the number of stacked rigs and vessels in these locations has more than doubled since the turn of the year, and is steadily rising.

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