Maersk Drilling invest up to $8 billion for seven new oil rigs

Maersk Drilling is set to invest up to $8 billion (£5.2 billion) to buy seven new oil rigs by 2017, Reuters has reported.

The investment will come as a relief to those working in the industry after recent reports have shown that global energy demand is starting to wane. This was backed up by a 20 per cent drop in crude prices in the last four months.

Despite the gloomy outlook, Denmark's Maersk Drilling will invest up to $8 billion to buy seven new oil rigs by 2017. Moller-Maersk- the drilling unit of A.P- will look to place their first order within the second half of 2013 as part of its campaign to double its fleet to 30 over the next five years.

Claus Hemmingsen, CEO of Maersk Drilling, told Reuters: ''We are pursuing this plan despite the world economic situation. So far, we haven't found a reason to change."

Oil companies have started to look further afield in the search of untapped reserves, abandoning many conventional spots for oil fields far off the coasts of the United States, West Africa, Brazil and Asia. These new territories are keeping demand strong for rigs owned by Maersk Drilling, Transocean and others.

''Over a 20-year period, (the world) needs to find new oil to the tune of four to five times the production of Saudi Arabia,'' Hemmingsen said. ''We do not foresee the oil price being below $100 (£65) in the long term.''

The expansion comes on top of current investments, which is a $4.5 billion (£2.9 billion) for seven platforms, which will be delivered by the end of 2015. That brings the total number of new rigs to be purchased by 2017 up to 14, which highlights the ambitions of the Danish oil giant.

Mr Hemmingsen said that new orders are expected to come in from oil fields further afield. Their 16 large offshore drill rigs currently in operation are fully contracted out this year, 85 percent so far for 2013, and more than 50 percent in 2014, he said.

Posted by Lauren Steadman