Mexico a bright spot for Keppel FELS

Singapore

MEXICO, with its low costs of oil extraction coupled with its energy reform, presents a bright spot in the current weak oil price environment for Keppel FELS, the rig design and building arm of Keppel Offshore & Marine (Keppel O&M).

Oil prices have recently tanked on the back of a crude oversupply, forcing oil companies across the world to slash discretionary capital expenditures, especially in oil exploration activity. This in turn has hurt the order-books of rig-builders like Keppel.