Requirement for units from oil companies off Norway and the UK in the coming year are also only serving to deter owners from scrapping older tonnage, thus maintaining the oversupply situation, the Oslo-listed company said in its second-quarter results statement.
“Oil prices appear to be stabilising in the $40 to 50 (per barrel) range and there is a sense of optimism from the industry that we have seen the worst of this down cycle,” the Seadrill-connected player said, adding that oil companies are realising that sustained cost cuts must be followed at some point by investment to slow production decline curves.
However,
