Fitch: Competition in China oilfield service sector may riseStaff writer ▼ | September 15, 2014
Chinese independent oilfield services (OFS) firms are likely to face more competition over the longer term, said Fitch Ratings in a research note.
Oil industry Operating conditions remain challenging
These challenges have been reflected in Jan-June narrower margins of many independent OFS firms such as Anto Oilfield Services Group, Petro-King Oilfield Services Ltd. and SPT Energy Group Inc.
The rating agency forecasted that order flows are likely to improve for the next 12 to 18 months as the Chinese national oil companies will continue to replace reserves and increase production.
"But margins would likely be impacted by the opening up of the market and greater transparency in the tendering process for outsourced oilfield services jobs," the research note said. ■