“The tightening credit markets and lower commodity prices may temporarily delay some rig-construction programs,” says Mark Urness, analyst with Calyon Securities (USA) Inc.


“These delays could result in deferment of bookings or possible cancellations for the rig equipment manufacturer, National Oilwell Varco, and some shipyards in Asia. In our view, these delays and possible cancellations have positive implications for leading deepwater drillers.”


According to ODS-Petrodata, there are currently 100 floaters under construction or on order, to be delivered by 2012. NOV, the world’s largest rig equipment manufacturer, secured three orders from Petrobras in March.


“It is unclear when, and if, the other nine (Petrobras) orders will be awarded, as some of the Brazilian contractors are having trouble obtaining financing. We believe that Petrobras is currently helping some of these contractors secure financing for the rigs,” he says.


The current construction program consists of 24 speculative new-build floaters, being built by relatively less-experienced contractors, that have not yet been awarded firm contracts by any E&P company and are expected to be delivered during 2010-12. “We believe that these construction programs are at a greater risk of being deferred further until financing becomes more readily available,” says Urness.


The major rig-building yards in Asia include Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding. “We have identified 21 floater programs in these yards that could witness short- to medium-term delays due to financing issues.” Samsung is expected to carry out a majority, 13 units, of the construction programs.

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