Global pick-up in oil drilling inspires helicopter operators

Growing oil drilling is inspiring helicopter operations. What had looked like a lull in the oil and gas sector as oil majors such as Exxon Mobil, Chevron, Total, Eni and Royal Dutch Shell announced spending cuts after years of double-digit percentage growth seem to be turning around. Their stock prices which depressed after the recent announcement of spending cuts, could also be readying for take-off.

A pickup in offshore drilling is swelling the order-books of the handful of helicopter operators that shuttle oil workers to and from remote rigs. Analysts point to renewed appetite for drilling in the Gulf of Mexico, West Africa and the North Sea after a lull that followed the Gulf of Mexico oil spill in 2010.

Technological advances are making offshore drilling more cost-efficient, reversing a decline in production and potentially rivaling shale hot spots such as Texas’s Eagle Ford formation in terms of growth.

Bristow and CHC ready to cash in

Bristow Group plans to invest $1 billion this year to procure just some of the 300 new helicopters that Barclays estimates will be needed by the oil and gas industry over the next five years. With a market value of $2.7 billion, Houston-based Bristow is the largest of the niche group of companies that supply helicopters to the oil and gas industry and, increasingly, for search-and-rescue missions. Bristow’s $1 billion investment this year, about triple its usual budget, will go toward the procurement of 47 helicopters, enough to boost the size of its fleet by 17 percent.

CHC has ordered 33 new helicopters and Era 20 from companies such as United Technologies Corp unit Sikorsky Aircraft, UK’s AgustaWestland NV and Eurocopter. The orders will increase their fleets by 14 percent and 12 percent respectively.

Stock listing to spur Caverton

Caverton made history as the first Nigerian oil services company to be listed on the main board of Nigeria Stock Exchange as the firm’s 3.35 billion shares will be listed by way of introduction at N9.50 per share. 

Caverton was widely seen as the poster child of indigenous capacity and ownership since 2010 when one of its subsidiaries, Caverton Helicopters, edged out loingng-established foreign operators to win a $648 million multi-year contract from Shell Petroleum Development Company (SPDC) for the supply and operation of seven helicopters.

The Shell contract in 2010 opened the floodgate for Caverton, with more contracts pouring in from other oil majors such as Chevron, ExxonMobil, Total and Addax Petroleum.

In 2013, the company commenced its first international operation after it won the contract to provide passenger transfer and pipeline surveillance services to the Cameroon Oil Transport Company (COTCO), a subsidiary of ExxonMobil.

Frank Uzuegbunam