Capital expenditure is dominated by Saudi Aramco and ADNOC driving future demand for offshore support vessels
Middle East offshore oil and gas expenditure will jump in the next five years with more than US$470Bn of planned capital investment planned in new and existing fields.
Saudi Aramco intends to spend US$334Bn over the next six years, averaging US$55Bn per year on offshore projects.
In the United Arab Emirates, Abu Dhabi National Offshore Oil Co (ADNOC) plans to spend US$130Bn in the next five years.
Synergy Offshore chief executive Fazal Fazelbhoy said this was on top of billions of dollars of investment in Qatar, Bahrain, Kuwait and Egypt.
“Middle East is a hotbed of activity,” he said at Riviera Maritime Media’s Annual Offshore Support Journal Conference. “I am optimistic about the offshore support vessel (OSV) market.”
He said Saudi Aramco intends to boost investment in the existing Marjan and Berri offshore fields and Zuluf Offshore.
ADNOC plans to invest in Umm Shaif, Lower Dalma Sour Gas, Hait and Gasha projects and expand the Upper Zakum field.
This will result in rising demand for OSVs and improvements in utilisation. “There are shortages of construction support vessels with anchor handlers being used instead,” said Mr Fazelbhoy. “Around 30 vessels have come from southeast Asia.”
For vessel owners there are positives from this demand and sentiment is improving. “Owners say the worst utilisation is now behind us and they have optimistic views about activity,” said Mr Fazelbhoy.
There are still more than 100 vessels laid up and in cold stack in the Middle East, some of these could be reactivated if required. “There is life for these stacked vessels for construction support and supporting dredging,” said Mr Fazelbhoy. “There are good opportunities for vessel acquisitions, especially for distressed assets.”