Surging demand, contract innovation and operational transformation define OSJ Middle East

At December’s OSJ Conference in the Middle East, discussion focused on a strategic opportunity that would have seemed unlikely just three years ago: the speed at which owners can now modernise their fleets to secure premium rates in a market reshaped by technology, decarbonisation mandates and new commercial models.

 

Discussions, networking and deal-making unfolded against the backdrop of a regional market growing at a 6.5% compound annual rate, fuelled by sustained NOC capital expenditure and the continuing expansion of offshore energy projects across the Gulf. Real-time polling captured market sentiment: 60% of attendees expect regional NOC capex to rise by more than 15% in 2026, while 85% see opportunities to enhance DP reference systems for shallow-water operations. 

 

ADNOC charts AI-driven logistics revolution

 

ADNOC provided the event’s defining announcement – a commitment to increase production capacity to 5M barrels per day by 2027, enabled by AI-powered integrated logistics delivering 15-20% efficiency gains. The company now moves 2M tonnes of cargo annually with 15% fewer vessels while simultaneously advancing hybrid vessels, electric crew boats and two remotely operated 60-m landing crafts for Q2-Q3 2027 delivery. 

 

Vessel modernisation as a strategic differentiator

 

Industry analysts presented compelling growth projections. Fleet utilisation exceeding 85% is driving DP2 vessel premiums of US$5,000-US$6,000 daily, double the rates commanded two years prior. The average fleet age of 12 years, coupled with measured newbuild activity, is creating sustained demand that favours early investors and crucially transforms vessel modernisation from a capital burden into a strategic differentiator.

 

Fresh commercial models unlock newbuild investment potential

 

Panel discussions reframed the financing equation: while traditional charter rates challenge conventional financial models, innovative contract structures create viable pathways. Panellists articulated the opportunity guiding delegates beyond short-term termination clauses toward partnership-based commitments unlocks capital allocation. ADNOC shared its transition to streamlined BIMCO standard contracts, replacing legacy 50-60-page documents and explicitly inviting topside maintenance vessel proposals backed by five-year-plus commitments. 

 

Technology transformation accelerates competitive differentiation

 

The technology showcase revealed market-ready solutions delivering quantifiable returns. Caterpillar presented dual-fuel methanol engines offering operational flexibility with transparent 15-20% cost premiums over conventional diesel, enabling owners to capture premium charter rates from sustainability-focused operators. Wärtsilä confirmed methanol technology maturity across multiple bore sizes, with fuel availability improving as infrastructure investment accelerates. DNV shared that hybrid battery installations now exceed 1,800 verified units globally, demonstrating proven rather than experimental technology. Delegates heard how using AI to review contracts is achieving 94% accuracy improvements in liability detection. Sonardyne introduced SPRINT-Nav DP, an INS-DVL integrated system delivering 1-m drift accuracy over 24 hours without seabed hardware. Ascenz Marorka documented US$600,000 annual fuel savings from electronic monitoring systems on southeast Asian vessels, while Twenty4X Solutions evidenced AI-driven noon report automation reducing master administrative burden by 70%.

 

GCC markets demonstrate complementary strengths

 

Regional spotlight sessions revealed how the UAE, Saudi Arabia and Qatar present distinct yet complementary opportunities for strategic vessel deployment. Each market demonstrates unique characteristics that reward tailored approaches while collectively sustaining the region’s growth trajectory. 

 

Qatar’s LNG development creates long-term visibility for owners committed to the market. The UAE’s position as the region’s innovation hub was underscored. Saudi Arabia’s offshore expansion, despite 2024’s temporary rig suspensions, maintains a robust long-term trajectory aligned with the Kingdom’s economic diversification objectives. Aramco’s procurement evolution towards more transparent processes and standardised contract frameworks creates accessibility for new entrants while rewarding incumbent operators who demonstrated reliability through market volatility.

 

Business value summed up

 

Financial and legal institutions provided frank insights on lending appetite, confirming that cash-flowing owners with robust contract coverage access favourable financing terms. Norton Rose Fulbright provided guidance on termination clause negotiations that equipped attendees with immediately applicable legal strategy. Panel discussions on partnership-based financing models revealed alternative capital pathways beyond traditional bank debt.

 

The exhibition area, networking breaks and popular evening reception allowed for concentrated relationship-building. This was best summed up by one delegate who said, "Miss this event and you miss market-moving intelligence".

 

ADNOC Logistics & Services senior vice president of offshore logistics Captain Mohamed Al Ali’s closing guidance reinforced this message, "Success belongs to those who think beyond immediate contracts and commit to modernisation, efficiency and sustainability. In ADNOC L&S, we’re building strategic partnerships with those who share our vision for safe, efficient, low-carbon solutions. The partners positioning now secure preferential access as demand accelerates."

 

Riviera’s OSJ conference series continues with the Annual Offshore Support Journal Conference, Exhibition & Awards, 2-4 February 2026, featuring the Offshore Wind Journal Conference and the OSJ Subsea Conference in London. 

 

To participate in an OSJ conference please contact ian.glen@rivieramm.com