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Reply to @bullnbear1 : Hi,

There is indeed indications of increased O& G capex with the oil price recovery, however the majority of the capex is directed at onshore O& G production and less on offshore O& G production (Check out Baker Hughes latest rig count report, the increase in rigs are mainly attributable to onshore rigs).

The key reason is that with the oil price volatility, O& G majors will prioritise the low cost production sites (Mostly onshore production sites) rather than high cost production sites (Mostly offshore production sites)

Unfortunately Kimheng services the offshore sector, the recovery of offshore sector O& G activities would be take much longer than next year

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