Page 12: of Marine News Magazine (November 2018)

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BY THE NUMBERS retiring vessels altogether sees most operators stacking the re- large scale. Unsurprisingly OSV demand is lower than it dundant elements of their ? eets in the hopes that demand was ? ve years ago. What is surprising is that if we cur- will rebound and most can be recalled to service. rently had the same level of drilling activity as we did ? ve

At the same time, the scrapping option is not as eco- years ago today, the number of OSVs required for drilling nomically attractive for offshore supply vessels as it would support would be lower (than 5 years ago).” be for tankers or bulk carriers. The low steel content of Finally, says Hockless, “These leaner times have forced offshore supply vessels leaves them with a scrap value drillers to reduce costs, and they have done so with great of less than $1 to $2 million, with transport costs also success. So much so that in some areas, a USD 40/bbl weighing on that dif? cult decision. On the other hand, oil price environment has been made pro? table. If vessel says VV’s Charlie Hockless, “Unfortunately for vessel owners accept scrapping losses now, the rewards/recovery owners, based on recent ef? ciencies made within the in- will come sooner.” dustry, they will have no choice but to scrap vessels on a www.alixpartners.com. www.vesselsvalue.com

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