Having weathered the prolonged downturn in the oil market, the Middle East is again poised for growth. OSV vessel utilisation and chartering represent 40% of global contracted supply and rig utilisation is running at 75%, versus a global average of 60%.
“From a relative perspective, I still see the Middle East as a bright spot,” said Arga Energy Consulting’s managing director Vivek Seth. “Historically, the North Sea has been a good indicator of the oil and gas industry working globally – from market trends to driving new safety initiatives. Although slightly volatile, this summer they’re talking about the rates picking up and there being a squeeze on the availability of vessels, which to me is a good omen for the Middle East,” he explained.
Mr Seth will be part of a strong roster of individual presenters and panelists at Riviera’s Middle East Offshore Support Journal Conference, which returns to Dubai on 24-25 April for a sixth consecutive year.
A two-day executive level event, Middle East Offshore Support Journal Conference will bring together the key regional and international industry players to Dubai to discuss the current market dynamics, including new opportunities for oil and gas developments that will shape the supply and demand for OSVs in the region over the next few years.
One of the emerging trends in the Middle East is an increased emphasis on local content, which makes it critical for anyone interested in participating in the area’s recovery and development to build local relationships.
“In a few years’ time, there will be a preference for local flags and local classification. The UAE has established its own classification society, so I strongly feel, give it a few more years and they will start creating stronger cabotage laws at least in Saudi and in the UAE,” Mr Seth predicted.
Increasing digitalisation is also disrupting the traditional oil and gas business model. What technology investments will OSV owners have to make in order to remain competitive?
Systems optimisation and harnessing data through digitalisation are the future-focused trends which ABS senior research engineer Dr Demetres Armanes believes will shape the oversupplied OSV sector. Dr Armanes will provide his insights as part of a session on 'The Impact of Digital Innovations in the Offshore Market' on 25 April at the conference.
The keynote speaker will be ADNOC Logistics and Services senior vice president for offshore logistics business unit Capt Ahmed Al Shehhi. ADNOC is a key player in the Middle East with plans to ramp up its production to 4 mbpd by 2020 and 5 mbpd by 2030. Over the next five years, it will spend US$130Bn on offshore development.
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