BP Spill Opportunity in Disguise for Rig Builders

According to a June 14 report from Bloomberg, heightened U.S. scrutiny of offshore drilling after the BP spill, the worst in the nation’s history, may spur oil companies to replace aging rigs with new platforms made in South Korea and Singapore. Rig-makers Samsung Heavy Industries Co. and Keppel Corp. stand to benefit from drillers buying $300m-plus semi-submersible rigs. About 57% of current units are more than 20 years old, according to Merrill Lynch, the Bloomberg report said.

(Source: Bloomberg)