Global oil services firms compete for big Indian contracts
With the plunge in global crude prices driving most countries to slash spending on oil and gas exploration and production
Release time:
2015-07-15
Source:
According to a Reuters report in Singapore on July 12, global oil service companies are currently desperately vying for big contracts from India.
With the collapse in global crude oil prices driving most countries to slash spending on oil and gas exploration and production, India has become a rare bright spot in the oil industry that has been hit hard by the plunge in oil prices.
This fiscal year, the state-run Indian Oil and Gas Corporation (ONGC) plans to increase its capital expenditure by 1/5 to 362.49 billion rupees ($5.7 billion), in sharp contrast to analytics' recent forecasts that global energy companies will cut spending by 20% this year.
India's ONGC's plans to increase spending have attracted numerous bidders to compete for big contracts in India, as increased supply from U.S. shale oil producers and slowing demand growth have caused oil prices to plummet by half since June last year.
In order to end the chronic current account deficit, the Indian government has made increasing domestic energy production a priority.
The winners of ONGC's recent oil services tender include Swiss Transocean Drilling (Transocean), one of the world's largest offshore drilling companies, SapuraKencana Oil, Southeast Asia's largest oilfield services company, Larsen & Toubro Group of India and Swiber Holdings, a medium-sized offshore construction services company based in Singapore.
Oil,Crude Oil
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