OFFSHORE BUSINESS Market review The year 2015 was the year that Oil & Gas companies cut ever deeper into the bone to weather their worst downturn in decades. By early 2016, crude prices had plummeted more than 70% over 18 months to below USD30 per barrel. Oil majors continued to cut back significantly on capital expenditure (CAPEX) by some 25% to 35% deferring or cancelling new exploration and development projects or reducing investments in producing fields. In tandem with this, CAPEX for floating production systems fell by some 24% and this is expected to be impacted further if the price of oil remains unpredictable over the next two years. The year also saw deepwater drilling activity slowing down tremendously, providing a glimpse into what future demand for potential floating production projects may be like. president/ceo’s report BUSINESS AND OPERATIONS REVIEW Excellent asset performance with uptime of 99.67% Excellent safety performance – Zero LTIF & Zero TRCF REDISCOVER I REBUILD I SUSTAIN 62
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