Fred Olsen Energy (GM:FOEAF) is an international offshore drilling contractor headquartered in Oslo, Norway. The company operates in the midwater and ultra-deepwater environments. Of these, the ultra-deepwater environment offers much greater potential which I have discussed in several previous articles. The company achieves operations in these environments through its fleet of eleven offshore drilling rigs which consists of three ultra-deepwater rigs, seven midwater rigs, and one deepwater rig.
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One thing that I immediately notice about the company’s fleet is that it is relatively old. With the exception of the three ultra-deepwater drillships and the Borgland Dolphin, every rig in the company’s fleet was built prior to 1981. This is something that could prove to be a significant negative about the company going forward. As I have discussed in many previous articles, the exploration and production companies that contract with offshore drilling contractors for the use of