Domestic drilling companies continue to grapple with low rig rates and poor offtake of contracts post global oil prices downturn in 2014-15.
Though oil prices have recovered from their lows of $35 a barrel in 2015 to about $62 now, continued volatility in prices has kept the overall business muted. Prices had peaked to $115 in 2014 before it fell to $35.
“No drilling company is looking to make profits at this juncture. Everyone is simply focusing on meeting their operational expenditure. Rig rates have come down to one-third of what they were before the oil price downturn and utilisations have dropped to 45 per cent from about 85-90 per cent earlier,” said an official with Jindal Drilling on condition of anonymity.
Aban Offshore, Jindal Drilling, GreatShip (India), Dynamic Drilling, Duke Offshore and Deep Industries among others are some of the top drilling companies in the country. Read More