Opportunities in view on Middle East drill rig, support vessel market horizons

Continued investment in developing new offshore oil and gas resources and upgrading existing fields will present charter work for OSVs and other vessel types over the next few years.

Investment in offshore oil and gas fields in the region is projected to be more than US$60-65Bn per year up to the end of the decade, according to the International Energy Forum, an international organisation of energy ministers, producers and consumers from 72 countries. This assumes global oil and gas demand continues rising and prices hold firm or strengthen.

This predicted investment raises owners’ expectations for long-term buoyancy and growth in the regional market.

Middle East governments are competing to improve global market shares, with members of the Organisation of Petroleum Exporting Countries (OPEC) working to collaborate on output levels in response to competition from Western countries and developing nations in South America and West Africa. 

State-run energy companies in the Middle East have developed long-term investment plans in their offshore hydrocarbon fields, with Saudi Arabia seeking to remain the world’s top oil producer and exporter.

Much of the activity in the Middle East will be focused on redeveloping decades-old offshore oil fields to recover more of the trapped hydrocarbons and release more of the pumped-in gas for recovery.

Qatar, notably, has ramped up investment to recover more of its huge North Field gas resources, exporting larger output volumes on Q-Max-sized gas carriers.

In the United Arab Emirates, there are plans to invest in major oil and gas fields and redevelop existing fields in the emirates of Abu Dhabi, Dubai and Ras Al Khaimah.

What links all of these projects is a requirement for offshore drilling campaigns, and many will need subsea and fixed steel infrastructure installed. UAE projects will use artificial islands and pipelines to produce oil and gas to new or upgraded terminals.

These projects bring contract opportunities for offshore support vessels. Anchor handling tugs will need to manoeuvre and tow jack-up drilling rigs, and dedicated vessels will be contracted to supply production facilities and support these rigs.

Subsea infrastructure installation requires pipelayers, derrick barges, survey and underwater intervention vessels. And crew need to be transported to these production facilities and drilling rigs from shore bases, meaning crew transport vessels could see contract opportunities arise.

Join us to explore these business and commercial opportunities and the projects set to be implemented at Riviera’s Offshore Support Journal Conference, Middle East 2024, which will be held in Dubai, 11-12 December.