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Live From SMME 2016

Iran no ‘goldmine’ for battered offshore sector

Iran no ‘goldmine’ for battered offshore sector

A leading, Dubai-based consultant to the offshore marine energy sector has warned the offshore industry not to expect Iran to offer a quick fix to the sector’s global woes.

Synergy Offshore ceo Fazel A Fazelbhoy, speaking on the sidelines of the Iran Investment Forum on the final day of the Seatrade Maritime Middle East conference, said delays to the post-sanctions Iran Petroleum Contract (IPC) meant new offshore projects remained firmly on the drawing broad.   

“There has been a lot of talk about Iran being a great goldmine that could open up to a very substantial market but I’d just like to add a little bit of caution to that because the actual realities are that, with the delays in the IPC, there are no firm exploration, production contracts signed as yet,” he said.

“I know the offshore community is desperate for good news and that they think this might be right around the corner. But it is at least two, two and half year wait while the IPC gets [sorted], they do the feed, and then you maybe start doing some seismic.

“Eventually, by the time the contracts get developed, the infrastructure gets built, the modules get shipped offshore, you are not going to need that offshore feed for the next two, two and a half years minimum.”

Fazelbhoy said the only types of vessels needed within the next six to eight months where accommodation barges and multi-purpose IMR vessels needed to help Iran rebuild its aging offshore oil and gas infrastructure “to bring some of the older infrastructure that is working at 35%, because of the lack of spares, to bring them up to 60-65% production capability.

“The rest of the fleet, the tugs, the anchor handling vessels are at least two, two and a half years out.”

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