Latest news with #offshoredrilling
Zawya
2 days ago
- Business
- Zawya
Northern Ocean Chief Executive Officer (CEO) to Speak at African Energy Week (AEW) 2025 Amid African Market Expansion
Africa's premier energy event, African Energy Week (AEW) 2025: Invest in African Energies, will welcome Arne Jacobsen, CEO of international drilling contractor Northern Ocean, as a featured speaker. As operator of two of the world's most advanced offshore drilling rigs, Northern Ocean's participation is vital to discussions on Africa's offshore hydrocarbons potential and the strategic role that service companies play in unlocking that potential. Under Jacobsen's leadership, Northern Ocean has expanded its footprint across Africa with its Deepsea Mira and Deepsea Bollsta rigs supporting major offshore projects since 2022. Notably, the Deepsea Mira played a key role in appraising TotalEnergies' landmark Venus oil discovery offshore Namibia in 2024 and continued operations in the Orange Basin with the Tamboti-1X exploration well in early 2025. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. In Q2 2025, the Deepsea Bollsta completed a one-well contract with a Chevron subsidiary in Namibia. Currently undergoing maintenance, the rig will remain stationed in Africa throughout 2025, underscoring Northern Ocean's commitment to expanding its presence in the continent's upstream oil and gas sector. In Ghana, Northern Ocean is advancing its strategic partnership with Springfield Group, following a successful well test on the Afina 1X appraisal well in Q4 2024. Plans are underway for a long-term field development contract utilizing the Deepsea Bollsta, expected to commence by mid-2025. 'Increasing offshore exploration is key to unlocking Africa's vast energy resources and driving sustainable economic growth across the continent. Northern Ocean's advanced drilling capabilities and steadfast commitment will play a critical role in transforming Africa's estimated reserves into tangible development outcomes that benefit millions,' says NJ Ayuk, Executive Chairman, African Energy Chamber. As major operators prepare to scale up exploration activities in South Africa and Namibia through 2025 and beyond, Northern Ocean is well-positioned to capitalize on this growth. AEW 2025: Invest in African Energies provides an ideal forum for Jacobsen to engage with governments, national oil companies and private sector leaders to forge long-term partnerships and secure new contracts. Distributed by APO Group on behalf of African Energy Chamber.
Reuters
16-06-2025
- Business
- Reuters
South Carolina's Republican governor asks to be left out of Trump offshore drilling plan
June 16 (Reuters) - The Republican governor of South Carolina appealed to the Trump administration on Monday to leave his state out of an impending plan to increase offshore oil and gas production. The letter comes as the administration wraps up a 45-day request for public input into a federal offshore oil and gas leasing program that could include new zones in the Arctic and elsewhere to maximize domestic energy development. The current five-year plan, developed by the administration of former President Joe Biden, includes just three sales of oil and gas development rights in the Gulf of Mexico. Previous five-year offshore lease programs, which are mandated by Congress, have ranged between 11 and 41 sales. Governor Henry McMaster said in a letter to Interior Secretary Doug Burgum that South Carolina could not afford to jeopardize its $29 billion tourism industry, which includes popular destinations like Hilton Head and Myrtle Beach. "South Carolina's coastline is one of the most pristine in the country, and offshore drilling is simply not in its best interest," McMaster said in the letter. In a separate letter to the U.S. Bureau of Ocean Energy Mangement sent jointly with North Carolina's Democratic governor, Josh Stein, the two governors urged the administration to preserve a ban on drilling off their coasts that President Donald Trump put in place during his first term. "We ask you to respect the wishes of our states and our coastal communities and re-affirm President Trump's decision to protect our coastlines and the industries they support," Stein and McMaster said in their letter to BOEM, which oversees offshore energy development for the Interior Department. Trump issued the ban, which is in effect until 2032, days before the 2020 presidential election as he sought to win over voters. An earlier plan by his administration to expand offshore drilling along many U.S. coastlines, including the Eastern seaboard, received strong opposition from both Republican and Democratic states.
Yahoo
13-06-2025
- Business
- Yahoo
Here is Why Borr Drilling (BORR) Jumped This Week
The share price of Borr Drilling Limited (NYSE:BORR) surged by 20.99% between June 5 and June 12, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A modern offshore drilling vessel navigating the seas with equipment mounted on its decks. Borr Drilling Limited (NYSE:BORR) is a premier offshore shallow-water drilling contractor dedicated to providing exceptional drilling services to the global oil and gas industry. Borr Drilling Limited (NYSE:BORR) continues to shoot despite posting disappointing results for its Q1 2025 last month, primarily due to reduced drilling activity. The company reported a 17.6% decrease in revenue compared to Q4 2024, while its net loss of $16.9 million was a decrease of $43.2 million compared to the net income in the previous quarter. However, on the plus side, Borr Drilling Limited (NYSE:BORR) reported that it was awarded nine new contract commitments during Q1, representing approximately 1,550 days and $221 million of potential contract revenue. Additionally, the company's operating rig count has now increased to 22, laying the foundation for stronger financial performance in the quarters ahead. Another catalyst supporting Borr Drilling Limited (NYSE:BORR) could be the sharp uptick in the global crude oil price, which has surged by almost 18% over the last week at the time of writing this piece. While we acknowledge the potential of BORR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None.
Forbes
11-06-2025
- Business
- Forbes
RIG Stock: Low Valuation But High Risk?
Transocean (NYSE:RIG), a company specializing in offshore drilling, has significantly lagged behind the broader S&P 500 index over the last twelve months, posting a decline of 45% compared to the S&P 500's increase of 12%. The firm is currently facing financial setbacks, worsened by escalating cost inflation. Its overall financial condition seems fragile, and a slowdown in economic growth is anticipated to further diminish the demand for new oil and gas exploration initiatives. Despite appearing to have a very low valuation, there remain several major concerns about RIG stock. In this analysis, we present a thorough comparison of Transocean's current valuation with its operational performance in recent years, along with an evaluation of its current and historical financial status. That said, if you are looking for upside with less volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative — it has outperformed the S&P 500 and generated returns exceeding 91% since its launch. Separately, see – QBTS Stock: What's Next For D-Wave After 1,350% Rally? From a valuation standpoint, Transocean stock presently seems low-priced when evaluated against its sales or profit. The company's price-to-sales (P/S) ratio is at 0.7, considerably lower than the S&P 500's ratio of 3.0. Likewise, Transocean's price-to-free cash flow (P/FCF) ratio stands at 5.7, significantly beneath the S&P 500's 20.5. Notwithstanding its low valuation, Transocean has shown substantial revenue growth in recent years. Over the past three years, its top-line revenue has grown at an average annual rate of 11.7%, outpacing the S&P 500's increase of 5.5%. More recently, Transocean's revenues surged by 24.4%, rising from $2.9 billion to $3.7 billion in the past twelve months, compared to the S&P 500's growth of 5.5%. In the most recent quarter, quarterly revenues experienced a significant increase of 18.7%, climbing to $906 million from $763 million a year earlier, greatly exceeding the S&P 500's improvement of 4.8%. However, the profitability indicators of Transocean present a stark contrast to its revenue growth. The company's profit margins are weaker than those of most firms within the Trefis coverage universe. Over the last four quarters, Transocean reported an Operating Income of $431 million, leading to a modest Operating Margin of 11.7%, which is lower than the S&P 500's 13.2%. Additionally, its Operating Cash Flow (OCF) for the same period was $559 million, which translates to a moderate OCF Margin of 15.2% when compared with the S&P 500's 14.9%. The most alarming figure is Transocean's Net Income over the last four quarters, which showed a loss of $728 million, indicating a very poor Net Income Margin of -19.9% against the S&P 500's positive 11.6%. The financial stability of Transocean appears quite weak. As of the latest quarter, the company's debt amounted to $6.6 billion, while its market capitalization stood at $2.7 billion (as of June 10, 2025). This results in a very poor Debt-to-Equity Ratio of 244%, significantly higher than the S&P 500's 19.9%, suggesting a heavily leveraged balance sheet. Furthermore, cash and cash equivalents make up only $263 million of Transocean's total assets of $19 billion, producing a poor Cash-to-Assets Ratio of 2.9%, which is markedly below the S&P 500's 13.8%. Transocean's stock has also been less resilient compared to the S&P 500 index during recent market downturns. For instance, amidst the Inflation Shock of 2022, RIG stock tumbled 53.5% from its peak of $5.08 on July 2, 2021, to $2.36 on September 23, 2022, representing a more significant decline than the S&P 500's peak-to-trough decrease of 25.4%. Although the stock fully recovered to its pre-crisis peak by January 9, 2023, and later rose to $8.80 by July 31, 2023, it is currently trading around $3.10. Similarly, during the COVID-19 Pandemic of 2020, RIG stock experienced a drastic drop of 90.6% from a high of $7.17 on January 6, 2020, to $0.67 on October 30, 2020, significantly exceeding the S&P 500's 33.9% decline. It wasn't until February 7, 2023, that the stock regained its pre-crisis peak. Additionally, during the Global Financial Crisis of 2008, RIG stock fell sharply by 73.8% from $153.00 on May 20, 2008, to $40.04 on December 24, 2008, again a steeper drop compared to the S&P 500's decline of 56.8%. Notably, the stock has yet to return to its pre-crisis high from 2008. In summary, Transocean's performance across these metrics suggests a generally weak outlook. Although its growth has been robust, it is overshadowed by significantly weak profitability and extremely poor financial stability. Its evident lack of resilience during downturns further amplifies the risk. Despite its current very low valuation, we perceive Transocean as a risky choice. From a long-term perspective, the industry-wide shift toward renewable energy and the increasing environmental regulations are likely to continue fueling investor skepticism about the long-term sustainability of fossil fuel-dependent companies like Transocean, thereby hindering its stock price growth. Of course, our assessment could be wrong. A rebound in demand for oil and gas exploration projects could provide substantial benefits to RIG stock. The company is also actively working to streamline its fleet, which entails an expected $1.2 billion impairment charge in Q2 for the disposal of two rigs (GSF Development Driller I and Discoverer Luanda) along with the potential future disposal of two additional rigs (Development Driller III and Discoverer Inspiration). This strategic streamlining could enhance the company's operational efficiency moving forward. Nevertheless, considering the ongoing poor profitability and weak balance sheet, the overall risk associated with Transocean seems high. We believe there are more attractive investment strategies available in the market. Consider Trefis High Quality (HQ) Portfolio which, consisting of 30 stocks, has consistently outperformed the S&P 500 over the past 4-year period. Why is that? As a collective, HQ Portfolio stocks have provided superior returns with reduced risk relative to the benchmark index; less of a roller-coaster experience, as demonstrated in HQ Portfolio performance metrics.
Zawya
20-05-2025
- Business
- Zawya
South Africa: TotalEnergies to Drill in 2026, Regulatory Reform Gains Momentum
TotalEnergies is preparing to begin offshore drilling in South Africa in 2026, pending final regulatory approvals, according to Mike Sangster, the company's SVP for Africa Exploration&Production. Speaking at the Invest in African Energy Forum in Paris, Sangster emphasized the company's ambition to expand its multi-energy strategy on the continent, with South Africa poised to play a central role in that vision. The announcement coincides with significant legislative developments in South Africa's oil and gas sector. In April, the government published the draft regulations for the Upstream Petroleum Resources Development Act, inviting public comment and signaling a renewed commitment to reform. The regulations will outline the procedures for implementing the Act – approved in November but not yet in effect – ushering in a more modern, investor-oriented framework for hydrocarbon exploration and production. Establishing a Fit-for-Purpose Framework For years, the lack of a clear and sector-specific legal framework has impeded South Africa's ability to attract sustained exploration activity and unlock its offshore potential. The Upstream Petroleum Resources Development Act aims to rectify this by establishing transparent licensing systems, defining state and Black Economic Empowerment participation and clarifying production-sharing mechanisms. Crucially, the Act seeks to create an enabling environment that balances investor interests with national development goals. It provides detailed guidance on the application and granting of exploration and production rights, introduces more predictable fiscal terms and offers mechanisms to manage environmental and social responsibilities. By aligning South Africa's regulatory framework with international best practices, the government is positioning the country to compete more effectively for operator capital, particularly as global exploration budgets become more selective and carbon-conscious. Igniting Interest in the Orange Basin South Africa's offshore acreage, particularly in the Orange Basin, has been gaining momentum on the back of transformational discoveries in neighboring Namibia. Within South African waters, the Brulpadda and Luiperd finds in Block 11B/12B remain the most commercially significant to date, estimated to hold more than 600 million barrels of oil equivalent. While TotalEnergies has since exited the block, citing internal portfolio shifts, the company's re-engagement with the broader South African market suggests continued belief in the basin's long-term potential. Last August, TotalEnergies officially became operator of offshore exploration Block 3B/4B, positioned southeast and on trend with neighboring oil discoveries, including the company's Venus discovery in Namibia. The Orange Basin represents one of the last untapped frontiers capable of delivering large-scale oil and gas volumes. With a more supportive regulatory backdrop taking shape, South Africa is well-positioned to attract the kind of deepwater investment needed to de-risk its acreage and build out its domestic gas infrastructure — a critical step toward energy security and industrial growth. Positioning South Africa for Investment at AEW 2025 As the government works to implement the Upstream Petroleum Resources Development Act, African Energy Week (AEW) 2025: Invest in African Energies in Cape Town offers a high-profile platform to promote the country's renewed upstream vision. AEW is expected to convene regulators, IOCs and service companies to discuss the commercial implications of the legislative overhaul and chart a path forward for exploration and development in South Africa. 'For companies like TotalEnergies – whose multi-energy strategy includes natural gas, renewables and decarbonized operations – a stable and transparent regulatory framework is key. Sangster's statement reflects growing confidence in South Africa's policy direction, and signals to the broader investor community that the country is preparing to welcome a new wave of responsible, large-scale investment,' says NJ Ayuk, Executive Chairman, African Energy Chamber. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
