OIL PRICES

Dubai 2018 | MARITIME | COLUMN

TBY talks to Anthony Weller, Senior Vice President of Seacor Marine, International Division & Managing Director of Seacor Offshore on offshore services.

Anthony Weller

With oil prices on the rise over the past year, are you seeing increased demand for offshore services?

The downturn in the price of oil created a tough environment for the offshore support vessel industry. There has been steady growth in the oil price in the current year but I would say IOCs and NOCs also need to see stability in the oil price. IOCs and NOCs have been through restructuring exercises to reduce costs; and as the oil price picks up we are starting to see some increase in offshore activity. We are seeing a little more tendering activity for offshore support vessels for exploration support. In addition, offshore maintenance has largely been put on hold in recent years as companies have been focusing on reducing expenditures, so there is going to be more activity generally in exploration, construction, and offshore maintenance. In the Middle East we are experiencing an increase in tendering activity. Saudi Arabia has been generally active during the downturn and there is more construction activity forecasted for the area. We have two liftboats currently operating in the country, which is one of the key products we provide. Overall, we are positive on increasing activity but our concern is the overhang in the supply of offshore support vessels.