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Singapore is often listed as the leading oil trading hub in Asia (third largest in the world after New York and London), and among the world’s top five oil refining centers. It has a refining capacity of nearly double its rate of petroleum products consumption. It is also a world leader in the construction of exploration and production platforms and FPSOs conversions as well as for jack-up rigs. However, with the industry downturn over the past 2-3 years, there were less projects undertaken but the industry outlook is improving and it is expected there will be new projects over the next 1-2 years.

According to industry sources and feedback from Singapore companies, the stability and economics of oil prices are very important. In addition, cash flow has an impact on new projects such as construction of new rigs so many companies are consolidating,  restructuring or adopting new innovative technologies to be more efficient. An example of a new project that is proceeding is the US$200 million semisubmersible floating production topside, which Shell USA is building in Singapore and will eventually be located 150 miles southeast of New Orleans in 4000ft depth of water in the Gulf of Mexico.

Engineering, procurement, and construction of the US$700 million LNG terminal was awarded in late 2009 to a Korean consortium led by Samsung. The first phase was completed in 2013 with the arrival of the first shipment of LNG from Qatar. Future expansion work (including a second LNG terminal which has been proposed), costing more than US$500 million, is already being planned as Singapore aims to be a future hub for natural gas trading and transshipment in Asia. Once all phases are completed by 2020, the first terminal will be able to handle nine million metric tons per year.

Singapore offers many opportunities for American companies including:

Supply of equipment such as boring or sinking machinery for upstream and downstream oil and gas, shipbuilding, marine, mechanical and electrical construction, oxidation additives, and various control systems;

Oilfield equipment including instrumentation such as drilling information systems, drilling monitors, mud logging units, mud monitoring systems, torque gauges, pressure gauges, weight indicators, deadline anchors, valves/actuators, performance testing, and design control systems; and

Supply of tubular products such as casings, tubing, carbon steel line pipes, drill pipes, heavy wall pipes, drill collars, drill stem accessories, and mechanical alloy steel tubes used on derricks.

Singapore has become one of the most important shipping centers in Asia and is one of the world’s top five oil trading and refining hubs. In addition, Singapore is one of the market leaders for floating production, storage and offloading (FPSOs) conversions and offshore jack-up rigs. A liquid natural gas (LNG) terminal is being expanded in phases to enhance Singapore’s position as the premier regional center for the oil and gas industry.  In view of rising oil prices, the industry is expected to be more promising over the next 1-2 years than over the past 2-3 years. However, uncertainties in the global economy due to politics and trade wars are affecting new projects coming onstream.  As the regional hub for Southeast Asia and its friendly business environment, there will be opportunities for U.S. exporters in Singapore, especially if there is an uptick in oil and gas prices and subsea exploration activities.

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