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Indonesia's high value OSV market firm on tight supply: Wintermar

Indonesia's high value OSV market firm on tight supply: Wintermar
The limited supply of high specification offshore support vessels (OSVs) flying the Indonesian flag has led to firmer rates and the market is expected to remain active with projects coming on stream, according to Wintermar Offshore Marine.

The Indonesian offshore vessels operator noted that the combination of higher exploration activity and the strict implementation of cabotage in 2013 has led to a strong Indonesian offshore market, allowing the company to register growth as well.

“Cabotage implementation in 2013 for offshore operations support vessels of 5,000-bhp and higher, including platform support vessels (PSVs) and dynamic positioning vessels, means that all our fleet is now fully covered under the cabotage law.

“Domestic rates have there risen vis-a-vis international rates as supply of Indonesian flagged vessels has become restricted,” Wintermar said.

“We continue to be optimistic about the longer term trend of offshore oil and gas in Indonesia as several larger development projects are due to start in the coming months. There have also been more foreign vessels reflagged into Indonesian flag which supports the longer term viability of the Indonesian deepwater drilling industry.”

The company added that while most of the contract tenures for deepwater vessels are short because most are engaged in exploration work, the commencement of some larger development projects will be “very welcome news for the industry.”

Jakarta-listed Wintermar posted a 2013 net profit of $27m, an increase of 34% year-on-year. Revenue for the year rose 50% to $186.7m.