Off-shore and oil equipment companies shifting to Asia-Pacific

Dec 5, 2006, 11:28 GMT

Singapore - Off-shore and oil equipment companies are significantly shifting their attention to the Asia-Pacific region and accelerating their exploration and production activities, a leading exhibition was told on Tuesday.

Addressing the opening ceremony of the Off-shore South East Asia (OSEA) 2006 exhibition in Singapore, Minister of State for Trade and Industry S Iswaran said, 'These are exciting times for the industry.'

Oil at 60 US dollars, double what is costs to produce each barrel in the region, has resulted in a surge in exploration and production activity.

This has led to increased demand for equipment such as rigs and production platforms, and for trained manpower, from oil riggers to geologists and geophysicists.

Noting Singapore is currently the leading oil trading hub in Asia and the world's largest oil refinery, Iswaran said the hosting of the conference underscores the city-state's key role.

The four-day exhibition has attracted 10,000 industry players, national oil companies, government officials and investors.

Iswaran referred to a forecast by oil and gas research analyst Douglas-Westwood that deep water production will leap from the current 10 per cent to 25 per cent of total off-shore production within the next five years.

'It will also comprise 30 per cent of global expenditure on oil and gas exploration and production by 2010,' Iswaran said, translating into a 20-billion-US-dollar a year opportunity with the 'Asia Pacific the fastest growing region.'

New technologies will be required to overcome the extreme temperature and pressure conditions presented by the elements at up to 10,000 feet under water, he added.

Australia's Northern Territory and the Timor Sea were mentioned as off-shore business locations for gas exploration opportunities.

'The best kept secret in Australia is the Timor Sea,' said Konstantine Vatskalis, Northern Territory minister for business.

Such oil and gas companies as ConocoPhillips and Eni are currently active in the Timor Sea, he said.

Off-shore exploration expenditure last year totaled nearly 157 million US dollars and is set to grow, he added.

Singapore has established a Centre for Off-shore Research & Engineering, Iswaran said. 'Companies can tap on our well-trained engineering talents, established research infrastructure and strong intellectual property protection to carry out development activities.'