Blame Covid-19, the oil price or both in equal measures. Either way, the offshore rig industry will need to adapt.
Just last week during Saipem’s quarterly results presentation, CEO, Stefano Cao, was asked an interesting question that appears to be at the forefront of many minds in the oil and gas industry just now. Cao was queried that in terms of Saipem’s second quarter revenue decline, how much is related to the Covid-19 pandemic and logistical issues and how much is down to the low oil price?
Cao stated that most of their revenue reduction is related to changing of contract timings. Some operators are requesting to move timings due to cash constraints due to the lower oil price but other delays have been caused by physical difficulties in managing the Covid situation. The CEO believes both issues are interconnected, which of course, they are.