How to operate foreign-flagged vessels in cabotage markets

In a video interview, Arus Jaya Oil & Gas managing director Vivek Khabya explains how foreign-flagged vessels can operate effectively in cabotage markets in southeast Asia.

He explained the importance of partnerships to mitigate risks and facilitate operations during Riviera’s Offshore Support Journal Conference, Asia 2024, held in Singapore in September.

Arus Jaya operates in southeast Asia with a base in Malaysia, and in West Africa through a base in Ghana, as a partner for engineering contractors and vessel owners.

It takes care of the cross-border, payment collection and currency risks and other operational challenges for these parties.

Mr Khabya provides his insight into the status of the subsea construction and support market in Asia, where charter rates have risen by more than 100% for some vessels and projects.

He says high rates are forcing field and asset operators to postpone non-essential projects or delay developments and maintenance.

Rate inflation has also led operators and owners to consider technical innovations to cap costs for subsea inspection work.