Big Player in Offshore Drilling

Robert Hsu, May 17, 2008

Founded in 1970, Atwood Oceanics (NYSE: ATW) is an international offshore driller of exploratory and developmental oil and gas wells, and related support services. While its main office is based in Texas, more than 90% of the company's contract revenues were derived from foreign operations in 2007. The company has actually conducted drilling operations in most of the major offshore exploration areas of the world, including the waters of the Arabian Gulf, Australia, China, India, Italy, Africa, Papua New Guinea, Central and South America and the Gulf of Mexico. To keep up with its worldwide business, Atwood's fleet consists of eight active, wholly-owned drilling units.

With operations all over the world, the majority of Atwood's drilling revenues actually come from the Asia-Pacific region. This area contributes to nearly half of Atwood's total revenues. Currently, four rigs out of its existing fleet of eight operating units are working with key clients in the attractive offshore markets of the Asia Pacific.

Since the easy to reach oil fields have already been found throughout the world, the only place for large reserves of crude oil and natural gas is in offshore fields. And Atwood has solidified itself as a big player in this area with all four of its drilling units already contracted until at least 2009. As demand for oil remains strong and more viable reserves need to be discovered, I expect day rates to increase for the company's rigs and for the company to continue to be successful in the profitable Asia-Pacific market.

Join China Strategy today, and learn about Atwood's strong financials, as well as successful projects that the company has inline.

Sponsored Links

What's happening in the world's major foreign markets right now? Will current events affect the stocks in your portfolio? Read InvestorPlace Asia's Top Stories to find out everything you need to know in order to stay on top of global economic news.

more...

Every country has its own special customs and traditions. Being familiar with a country's culture can often make a difference in whether you gain or lose from investing in its stock market. Check out our culture section to learn more about the societies of the world's fastest-growing emerging economies.

more...

There's a lot happening around the world today, and it's important to know how it's affecting your investments. Watch the latest videos covering important Asia topics!

more...