| |
| |
![]() |
| |
|
| |
|
| |
|
SINGAPORE : High oil prices have given the oil and gas industry a boost this year.
But industry players are not ignoring alternative energy sources.
Mainboard-listed KS Energy has made its first foray into wind power with a US$44 million charter contract from Siemens Wind Power.
It will supply Siemens with a vessel for offshore wind power operations in the North Sea.
For KS Energy, alternative energy sources such as wind power are key growth areas, as more businesses around the world explore clean energy to leverage on better tax rebates and funding offered by governments.
Kris Wiluan, chairman, KS Energy, said: "Once you put the wind facilities, there is always servicing required, there is a lot of repair, spare parts (required), so we want to be there. It is a continued business."
But the company is not ignoring its core oil and gas business.
It has acquired an Amsterdam-based company that provides specialised manpower training for the oil and gas sector - for S$6 million.
But the current credit crisis may still restrict access to funding for other investments.
Mr Wiluan said: "Each drilling rig will cost me - for the jack-up for example - US$160 million to US$200 million. For example, in the Middle East, their standard now is for five units, India requires five units, and Mexico another five units...you cannot go and take all (of them). You can take one or two and that is good for us."
Meanwhile, the company's SSH Corporation subsidiary has signed a five-year contract with Sumitomo Metal Industries in Japan to buy steel plate materials used in construction in the offshore energy industry.
Singapore's offshore oil and gas sector achieved an output of S$12.8 billion last year, 27 per cent higher than 2006. - CNA/ms
|
