Expanding regional OSV fleets in a growth market

Demand for offshore support vessels in the Middle East is high and is expected to remain stable for several years, providing opportunities to vessel owners in the region. However, ships are ageing and there are calls for fleet renewals.

Mergers and fleet acquisitions make more sense than ordering newbuild offshore support vessels to expand operations in the Middle East, according to Tidewater managing director for the Middle East, Indian subcontinent and east Africa, Fadi Diab.

He says there will be a growing market for OSVs, especially for vessels supporting engineering, procurement and construction (EPC) contractors in the next few years.

To meet these opportunities, Tidewater is considering acquiring secondhand vessels to expand its fleet as part of its long-term strategy, Mr Diab explains during an interview at Riviera’s Offshore Support Journal Conference, Middle East, held in Dubai in December 2024.

The Middle East is an important region for US-headquartered Tidewater’s vessel operations and portfolio. It operates 41 vessels supporting exploration and production projects, security and construction work and well stimulation throughout the Middle East.

This is part of a global fleet of around 170 vessels active in the offshore oil, gas and growing renewables sectors.