High OSV demand, ageing fleets drive higher utilisation, charter rates 

There is considerable activity in the Middle East, which is the most stable of all the areas, providing certainty to owners and energy companies.

Maritime Strategies International associate director Todd Jensen said it is one of the "key markets globally", with engineering, procurement and construction (EPC) spending costing US$25Bn annually.

"In 2026, there is potential for high spending on EPC contracts with several out to tender and energy companies looking for more jack-up rigs," said Mr Jensen.

Around 100 platforms and hundreds of kilometres of pipelines are expected to be installed by 2030.

"Fleets are controlled by large owners, and there is a stable, high level of activity," said Mr Jensen. "There is plenty of work in the pipeline for the next few years to keep vessel utilisation high at over 80%."

Northern Europe

Norway is a strong market for drilling rigs and OSVs, but the market across the rest of northern Europe is poor, said Seabrokers Group offshore market analyst Paul Dear.

Norway has 25 active rigs, and major energy companies plan to extend development and exploration.

"There will be increased rig activity and rig demand should remain strong to 2027," said Mr Dear. "There are new projects, high investment levels and multiple field developments, requiring significant investment to stem production declines."

Although markets in the UK, Dutch and Danish sectors have weak oil and gas sectors, there is plenty of work to provide support vessels for offshore windfarm projects.

In addition, owners could benefit from the highly volatile spot market, where charter rates can vary from US$20,000 per day up to $100,000 per day.

Asia-Pacific

APac is also a volatile OSV market, with cabotage and local content challenges, but with lower levels of utilisation and a higher oversupply of vessels than other sectors.

Fearnley Offshore Supply senior market analyst Jesper Skjong said utilisation is between 50% and 60%, while activity reduced in 2025.

He expects improvements in field developments and drilling, especially in deeper waters, will result in rising activity and demand in 2026 and 2027, "as more high-spec assets are required".

An ageing fleet in the region has led to owners removing them from the market and replacing them with newbuilds.

Mr Skjong thinks more vessels will leave the APac fleet, "changing the market balance" and raising utilisation and day rates.

"It is a shrinking fleet, despite the newbuilds coming from shipyards," he said. "Perhaps 40% of the fleet could disappear in the next five years. Some sections of the market are getting close to the previous peak, so day rates could climb above historic levels in future years."