It may be in the North Sea, the Gulf of Mexico or in the Middle East – but there's a good probability that an offshore jack-up oil rig extracting oil and gas was designed or made by a Singapore-based marine engineering company. Singapore is the top player in the global market for oil and gas drilling units and offshore support vessels. From their humble beginnings as regional ship repair centres, our local conglomerates Keppel and SembCorp have become renowned names in the global industry.
Today, Singapore is the largest manufacturer of jack-up rigs, and commands 70 per cent of the world market. It also has 70 per cent of the global market for the conversion of Floating Production Storage Offloading units.
The future of the industry remains bright, driven by a global increase in energy demand. In particular, emerging markets such as China and India as key energy drivers are estimated to account for more than half of the global incremental energy demand from 2010 to 2040.
To meet future demand for energy, offshore deepwater along with unconventional offshore oil & gas exploration and production activities will increase, to address the shortfall in conventional onshore oil & gas resources worldwide. More sophisticated marine technologies and products will be required to enable this new play in oil & gas exploration.For example, drilling rigs operating in the North Sea need to be designed for harsh environment and need to meet stringent specifications. These trends present exciting opportunities for Singapore’s marine & offshore sector.
The marine and offshore industry is on a roll, buoyed by high oil and gas prices and an ageing offshore fleet. Singapore has been a big beneficiary of the boom, having carved a reputation for consistent high quality and timely delivery. An expert cluster of marine-related service companies such as those providing classification services, maritime law and insurance services, and offshore support services has developed here. The industry also reaps significant gains from the country's robust and dynamic supply chain and precision engineering infrastructure. In 2011, total output from the marine and offshore industry grew to S$12.9 billion.