poised to be alternative oil rig construction and
By Saifur Rahman, Business News Editor
The UAE will become an alternative oil rig
construction and repair centre as the country's
handful yards are growing busy with major
international orders, sources said.
"Due to a worldwide shortage of rig construction
facilities and larger demand for more new buildings,
the UAE-based rig repair yards are going to get
their share of the contracts," Tony Bromham, partner
and technical director of QGM Group, told Gulf News.
"Major contractors including those in Singapore are
booked till 2010. So the new demand has to be met by
emerging contractors in the Gulf like us. We are
getting increasing numbers of inquiries as we are
currently bidding and negotiating for Dh2.2 billion
($600 million) worth of newbuilding projects."
The Gulf is the fourth largest region in terms of
rig fleet with 81, following North America which has
293, North Sea (Europe) with 160 and Southeast Asia
Global demand for rigs is growing fast with offshore
fields getting busier. Looking at jackup rig
contracts already in place for the next two years,
it is easy to see where day-rates are heading.
"For January 2007, there are currently 298 jackups
that will be under contract during the month, which
accounts for 74 per cent of the fleet, and those
rigs are set to be earning about $20,000 (23 per
cent) more per day than they were last month. At
this point, about 50 per cent of the fleet is
contracted through the end of 2007, with day rates
averaging $132,000 for those contracts," said a
Reuben Segal, project manager at Noble Denton marine
consultants, earlier told Gulf News, "The market is
showing signs of strong growth as the demand for new
rigs are growing. Most rig contractors have a
backlog of orders up to 2010. That's why UAE has a
He said, for long, yards have been maintaining and
upgrading rigs. This is the first such contract to
have been awarded to any yards in the Middle East.
About five major players - National Petroleum
Construction Co and Adyard of Abu Dhabi, Dubai
Drydocks, MIS, Lamprell - are currently serving the
growing needs of the global market.
Dubai Drydocks earlier this year, entered ship
QGM group's manpower increased from 50 last year to
1,200 to date, as the company expands its business
at three land sites in Hamriyah Free Zone. "The UAE
has now become a major centre for for the
construction and repair of offshore rigs and is
capable to meet the local, regional as well as
international demand and we currently possess all
the resources and technical knowhow," said Chris
Walton, commercial director of QGM.