Singapore’s Mega Oil Rig Builders Keppel, Sembcorp Marine Discuss Potential Merger

Singapore’s Mega Oil Rig Builders Keppel, Sembcorp Marine Discuss Potential Merger

Loh Chin Hua, chief executive officer of Keppel Corp., right, speaks to the media during a briefing ... [+] in Singapore on July 20, 2017. The colleague to his right is Chan Hon Chew, chief financial officer of Keppel Corp. Keppel Corp. and Sembcorp Marine on Thursday agreed to explore the possible merger of their offshore and marine (O&M) engineering services businesses. Combining the two companies“”both controlled by Singapore state investment arm Temasek Holdings-will create a stronger entity that's poised to benefit from the shift towards cleaner and renewable sources of energy, the companies said in a joint statement. "While the outlook for oil exploration and related activities remains uncertain, the outlook for energy transition is robust, including areas such as offshore wind and hydrogen," according to the statement. The International Energy Agency recently forecast investments in clean energy to more than triple by 2030 to nearly $5 trillion per annum, it added. Keppel and Sembcorp Marine's O&M businesses have been hard hit by the drastic reduction in oil and gas exploration activities in recent years as energy companies pivot towards the production of cleaner and renewable energy. The Covid-19 pandemic exacerbated the situation, driving both companies into the red