ECOWAS is an organization which is unlikely to be known my many. The Economic Community of West African States is a 15 member bloc of countries founded in 1975 and encompasses just under 350 million people. Like NAFTA - it is a trading block. Unlike NAFTA, it has a (small): parliament, development bank and peace-keeping force with greater aspirations on setting up an EU-like model. Continue reading "Emerging Markets in West Africa"
Nigeria and Oilfield Sales
“But, it’s Nigeria”, was the feedback during a recent conversation with a client on the potential to expand oilfield sales to Nigeria. To be fair - it is likely many small to mid-tier international oilfield companies have said (or thought) something similar on the prospect of expanding oilfield sales in this part of the world. Continue reading "How to expand oilfield sales to Nigeria"
Valuations in Buying or Selling Rigs
According to VesselsValue, valuations for some drilling contractor rig fleets have decreased by 40%. This is a likely higher for companies with older fleets. However, there are several opportunistic firms buying or selling rigs determined to use this down-market to buy rigs at severely discounted prices. In conversation with several clients, this has been compared to Baron Rothschild's advice: "The time to buy is when there is blood in the streets”. Below are EnergyFundz's™ observed trends in buying or selling rigs. Continue reading "Consider These Trends If You Are Buying Or Selling Rigs In 2017"
As we wrote about recently, acquisitions involving US rigs and oilfield equipment are getting the attention of international buyers. There is little information, however, on what needs to be considered before transporting rigs and oilfield equipment. Continue reading "Five Things to Consider When Transporting Rigs and Oilfield Equipment"
When I’m speaking with potential sellers of rigs and oilfield equipment, a routine question they ask me is: Who is buying in this market? It’s a fair question. Continue reading "When It Comes to Buying and Selling Rigs or Oilfield Equipment – Think Local but act Global."
We recently heard from Transocean's CEO, Jeremy Thigpen, at the Rice Energy Finance Summit
(see picture below). A particular area of interest was his decision process on whether to sell or retire rigs. Thigpen summed it up simply: Continue reading "Should Rigs Stay or Should Rigs Go?"
The global market for rigs makes for depressing news. This is especially the case if you're an offshore deep-water drilling contractor with an ageing fleet and low utilization rate (i.e. contracted divided by owned rigs). Perhaps slightly better news if you have a newer fleet and diversified in your rig portfolio (jack-ups, semis, drill-ships). Finally, the onshore rigs market has glimmers of hope but will never be back to the levels of 2014. Continue reading "Rigs Market"
It's been some time since our last blog post and it's certainly not due to a lack of activity on our part. If anything, we've made more progress in the last few months with growing EnergyFundz than we have over the last year. So what's changed? Continue reading "Updates and Changes"
Over the past 3 months, we have attended industry events where and heard from several capital providers in the energy space. While each event had a unique topic, a few themes became clear:
Continue reading "The Good, Bad and Ugly of Capital"