Middle East oil and gas OSV market heating up

With the gradual return of jack-up rigs to Saudi Aramco, the activity in the Middle East offshore oil and gas sector has picked up in the last two months, with increased levels of EPCI work and construction support, according to a leading shipbroker.

“Despite additional rig suspensions, the OSV market remains busy, with vessels being redeployed for work in Saudi waters and other areas in the region where supply is limited,” reported Fearnley. Saudi Aramco had suspended contracts impacting 22 jack-ups earlier in 2024.

Westwood Global Energy Group reports Middle East offshore upstream engineering, procurement and construction investment for 2024 at US$7.8Bn — “a dip of 49% after Saudi Aramco revoked its decision to increase production capacity to 13M barrels per day by 2027.” Overall, EPC spend for 2024 is estimated at US$63Bn, with the Middle East accounting for 12%, the third most in the world behind Latin America (33%) and southeast Asia (14%), according to Westwood.

AHTS newbuild

Recent offshore support vessel newbuild deliveries to Middle East owners include the first of 10 diesel-electric anchor handling tug supply (AHTS) vessels for Rawabi Vallianz Offshore Services (RVOS).

Vallianz Holdings Ltd, in collaboration with RVOS, took delivery of the AHTS vessel from a Chinese shipyard. Specially designed for shallow draught operation, the Saudi owner’s 64-m AHTS vessel Rawabi 215 was built by Jing Jiang Nanyang Shipbuilding Co, according to a social media post by Vallianz Holding.

Meanwhile, Zakher Marine International, part of the ADNOC Group, bought two 6,000-bhp AHTS vessels. The Abu Dhabi-based owner acquired Yong Ye 63 and Yong Ye 67 from Sino Commerce Guangzhou, according to Seabrokers. The 2019-built vessels were constructed by Fujian Southeast Shipyard to FOCAL 680 designs, and will be renamed as ADNOC A14 and ADNOC A15. The ship broker reported the vessels arrived in the UAE in October following their mobilisation from China.