Fred. Olsen Energy: Market to Bottom in 2017
Rig firm Fred. Olsen Energy said during a presentation at an oil conference in Oslo on Wednesday:
- The market is turning in 2017 and longer-term indicators are positive
- The requirement for offshore drilling units is materializing later in the upturn
- Strong increase in requests and contract activity in the North Sea market
- Earlier recovery of the harsh environment mid-water market is materializing
- The pressure on day-rates is expected to be reduced, however contract durations will continue to be of shorter term nature
- A total increase in exploration and production spending of approx. 12 pct expected in 2017, driven by onshore
- A further decline of approx. 15 pct in offshore E&P spending expected in 2017
Reporting By Ole Petter Skonnord
