Bullish times for Middle East offshore marine markets

The atmosphere at last week's Middle East Workboats and Offshore Marine (MEWBOM) event in Abu Dhabi was certainly bullish, with key regional players signing substantial contracts that will have a significant effect on the make up of the region's fleet.

The Saudi Arabian state oil company, Saudi Aramco, which owes 20% of its daily production to offshore fields, led the charge with a forecast of a continued increase in demand for offshore services. The forecast was reinforced by a fleet renewal strategy that will not only see most of the current fleet replaced by 2016, but an additional 50 vessels added, bringing the total to 260.

Abu Dhabi Petroleum Ports Operating Company (IRSHAD) also announced a fleet investment of around $544m over the next five years, with a similar focus on rehabilitation and replacement.

Despite these and other announcements of investment, the supply and demand fundamentals in the region will remain strong, according to Dubai-based brokerage Rigships. It forecasts increased utilisation across the board, spurred by the retirement of the numerous vessels in the market approaching 25 years of age and an increase in the number of active offshore fields in the Middle East.

The leading class society in the offshore arena, ABS, announced their confidence in the region, citing the necessary renewal of the aged rig fleet, a move towards deepwater and the increased use of OSVs for inspection repair and maintenance of subsea installations as drivers in the evolving market. Speaking at the MEWBOM keynote, Ken Richardson, evp for energy development at ABS also highlighted the technical developments the fleet is experiencing, including the emergence of LNG as a fuel for OSVs and the increased demand for high-redundancy dynamic positioning vessels.

While the offshore boom may well have focussed on emerging areas in South America and South East Asia, it seems the Middle East Market is taking its time in the spotlight, renovating its rig and vessel fleet and developing new fields away from its usual shallow-water comfort zone,

The supply mix may be preparing for a balance adjustment between gas and oil, onshore and offshore, but there's obviously plenty of oil left in the Middle East.

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