Page 13: of Offshore Engineer Magazine (Jan/Feb 2024)

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OSVs THE APAC MARKET was the frst of new supply infux also spells good year of real news for owners, albeit an increas- 2023 recovery for ingly older age profle of existing ves- owners in the offshore supply market sels fnds themselves in high demand, and yet we have barely skimmed the with Charterers scrambling to secure surface of what’s to come. The market is vessel days in advance. As opposed to still on an upward trajectory with char- the period fr om 2015 onwards, early ter rates accelerating month-by-month, commitment from charterers is now availability changing day-by-day, lead- key to securing the correct tonnage. ing to earnings doubling and, in some In 2023, we witnessed a furry of segments, tripling since the lows of signifcant S&P transactions, hinting 2020. Current rates will remind many at a very busy second-hand market on of the glor y days of pre-2014 with the the horizon where sellers have the up- demand for OSVs projected to remain per hand. Demand from other regions elevated for years to come. such as the Middle East is also seeing

In general, offshore deepwater eco- an upswing, leading to strong S&P in- nomics have improved and the in- terest across the high-end APAC feet. creasing pace of FID announcements Turning our focus to specifc re- indicates confdence in the market gions, Australia is poised to become a upcycle, with exploration sentiments signifcant market for decommission- also rising alongside the uptick in ing, with projections from the Center drilling activities. For the APAC re- of Decommissioning Australia esti- gion, Rystad Energy expects E&P ves- mating a value of $40 billion for up- sel spending to grow by 17% this year, coming work, particularly in the Bass towards $2.2 billion. In Australia, Strait region. Moreover, in Southeast this fgure is set to surge by 62% to Asia, numerous offshore wells are $184 million. This wider trend is in nearing the end of their production alignment with the strategy plans an- life, with projections indicating a nounced by the various NOCs in the considerable number will cease opera- region, as new projects offer strong tion by 2030. This trend is mirrored economic fundamentals. Petronas and in the Brunei market, where plans are

ONGC have declared their continued underway to decommission 60 plat- focus on domestic exploration, while forms between 2026 and 2032.

PTTEP has allocated $6.7 billion for In M alaysia, Petronas reported 19

E&P activities in 2024. exploration discoveries last year, to- talling mor e than 1 billion barrels of oil equivalent (boe). This series of

Demand for OSVs

The APAC region is poised to see successful discoveries highlights the untapped potential in Malaysia. With an increase in activities this year. Cur- rent market developments suggest Petronas remaining committed to that OSV demand in Asia will peak E&P investments in the region, Ma- in 2026, recording overall demand laysia is expected to remain one of the largest markets for support vessels in of more than 600 vessel years. Cur- rently, Asia’s active OSV feet stands the coming years. From decommis- sioning projects to new oil discoveries, slightly above 500, with vessels in- creasingly tied to long-term contracts, there is no shortage of opportunities further limiting availability. The lack in APAC.

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