Vessel owners firmly in control of global subsea support sector

Although a few owners are considering expanding their fleets, there is still expected to be a shortage of these specialised vessels, said Strategic Offshore Research managing director Ian McIntosh during Riviera Maritime Media’s Offshore Support Journal Subsea Conference, held in London, UK, in February 2024.

Shipowners can increase their charter rates with growing confidence in achieving high utilisation rates in a rising market because of the limited number of newbuildings currently on order.

Mr McIntosh said there are no disruptive players emerging, nor any new private equity-backed contractors trying to enter the market, which is highly consolidated and tightly controlled.

Offshore oil and gas developments in Latin America, West Africa, Gulf of Mexico and in southeast Asia are driving demand for subsea construction and diving support vessels, he explained.

Subsea infrastructure will need to be inspected as energy companies prolong production of existing assets during a rising market, while decommissioning is the extra factor for long-term demand growth.

Mr McIntosh expects demand for offshore energy and development projects to keep the market strong for owners in the next five years.