Westwood was commissioned by one of the largest E&P companies in Southeast Asia to conduct a detailed strategic market study on rig partnership options.
Project Brief
Westwood was commissioned by one of the largest Southeast Asian E&P companies to conduct a strategic market study on potential rig partnership options. Our scope of work included:
- Overview of the Southeast Asian rig market with key metrics including historical utilisation and dayrates by various rig types.
- Five-year rig market forecast based on the forward availability of rigs, visible tender requirements, potential newbuilding and forecasted number of wells drilled. Westwood also provided a scenario-based forecast with a reference, low and high case.
- A discounted cash flow valuation of various rig types was provided as the Client weighed various options.
- Analysis of historical rig partnership case studies to determine the applicability to the Client based on key assessment criteria such as cost, synergy, lead time and key market risks.
- Recommended business model options based on the Client’s preferred requirements. Westwood also provided a quantitative model which estimated the IRR and payback period based on the Client’s final business model option and the choice of scenario.
Consulting Sectors: Offshore Energy Services Consulting, Offshore Drilling Rigs Consulting
Westwood Approach
Westwood’s core offshore rig market intelligence tool, RigLogix, offers the best-in-class technical and commercial data on offshore rigs globally.
Key rig partnership case studies were identified by leveraging on the extensive experience of our rig experts and industry contacts, whilst quantitative outputs such as Westwood’s rig market forecast and valuation of various rig types were achieved by analysing historical dayrates, utilisation, tender requirements and potential attrition and newbuilding which can be found on RigLogix.
Project Outcome
The Client’s strategy team was impressed with the degree of detail provided and the level of insight that was delivered on a quantitative and qualitative level. The resulting report and quantitative model empowered the strategy team to make informed commercial decisions that ensured the best interests of the company.
Westwood Consulting Project Team
For every energy consultancy mandate that Westwood delivers, we define key roles to ensure the smooth management and delivery of each project.
Thom Payne
Thom ensured consistent and effective communication with the Client’s strategy team to understand the purpose of commissioning this market study and the specific concerns that needed to be addressed.
Lam Weng Tim
Tim sourced relevant business models used in the offshore rig market and implemented a grading framework to assess the applicability and strength of each. Tim also built a detailed model for the Client to assess each investment case based on specific market scenarios.
Paul Ezekiel
As Westwood’s APAC offshore rig expert, Paul’s experience streamlined the process of proposing unconventional commercial rig partnership options. Each option was discussed in detail with the Client’s strategy team to assess the applicability to their operations.
