Specialist vessels with engineering and project capabilities are starting to see better rates of return, says Archer Knight executive director David Sheret
Subsea market intelligence and consultancy specialists Archer Knight’s executive director David Sheret will speak on the outlook and opportunities for the subsea and inspection, maintenance and repair (IRM) vessel markets at the Asian Offshore Support Journal Conference in September.
Mr Sheret shared his views on current market trends and a preview of the insight conference attendees can expect in September with Offshore Support Journal.
Utilisation has grown in most regions over the past 12 months, and most vessel types are witnessing improvements in their respective markets, said Mr Sheret, noting “The market for most vessel types is far from optimal but the signs across the board are significantly better than in 2015, 2016 and 2017."
Rates remain a particular area of concern, said Mr Sheret, noting that during the downturn operators challenged costs by returning pressure on margins to the supply chain. Since then operators have focused on maintaining cost levels, he said, so although activity has increased, vessel rates remain low, comparatively.
He added “That said, the market is showing signs that specialist vessels such as dive support vessels are showing increased utilisation.
“2020 currently looks like this trend will continue, and if it does, demand for these vessels will grow.”
Mr Sheret noted evidence seen by Archer Knight suggests operators are both sanctioning more projects and increasing maintenance budgets, adding “Specialist vessels with engineering and project capabilities are starting to see better rates of return.”
If the oil price is sustained and avoids spikes, IRM and brownfield developments should increase throughout most hubs around the world as this provides the best form of increased production and, therefore, revenue, said Mr Sheret. He added “The focus for many operators has changed over the past few years, with regions previously unfavoured now important to fund other projects globally, such as shale and LNG.
“Therefore, we see an incremental increase in most regions at this time.”
As well as the increases in traditional oil and gas activity, renewables and the general ‘blue economy’ offer additional opportunities for vessel owners, Mr Sheret noted.
“Defence, marine agriculture, wave technology and other sea-based industries that require construction and maintenance activities will provide innovative organisations with increased opportunities and importantly, a wider market and a more robust defence against the more cyclical markets such as oil and gas.”
Mr Sheret is one of the speakers in the ‘Market Outlook’ session, which will analyse trends in the offshore oil and gas market and how oil prices are affecting OSV demand. The session will also provide insights into how key players intend to improve vessel utilisation and take up opportunities in the deepwater, subsea and IRM sectors. Mr Sheret’s presentation will address the outlook and opportunities for the latter two of these, focusing on subsea assets’ utilisation, emerging opportunities from light multipurpose subsea vessels to more sophisticated vessels, and asset utilisation and market strategy for multipurpose support vessels and dive support vessels.
David Sheret – Snapshot CV
The Asian Offshore Support Journal Conference will take place at the Marine Bay Sands Expo and Convention Centre in Singapore from 17-18 September.
Tickets can be booked online with discounts for IMCA members. Eligible full-programme attendees can apply for MCF training grant support.