Page 12: of Offshore Engineer Magazine (Sep/Oct 2025)

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MARKETS OSVs age working AHTS and PSV numbers, with declines rang-

EPC Backlogs, Drilling Trends and ing from 25% to 50% over the corresponding timeframe.

Key Contract Awards

The Middle East has maintained higher overall utili-

As of early October, market conditions indicate a de- zation rates than other regions, averaging approximately cline in drilling activity compared to last year’s peak, al- 80% since 2023 for conventional OSVs. This trend has though activity remains robust relative to historical norms. resulted in signifcant vessel mobilization from areas such The strong trend in dayrates and prevailing market tight- as Southeast Asia to the Middle East, refecting steady ness can primarily be attributed to a substantial backlog of demand. Consequently, the region has absorbed a sub-

EPC projects.

stantial portion of the Chinese orphan feet in recent

Among notable contracts, last September saw QatarEn- years, estimated to total over 70 vessels in recent years, ergy awarding Saipem the EPCI of six platforms, including which has reduced the number of resale candidates at cables and subsea pipelines for the North Field expansion.

Chinese yards.

The contract was worth roughly $4 billion and tied to

While the region’s current average age is around 16 years the aggressive LNG production growth target, leading to across the PSV and AHTS feet, which is fairly in line with strong visibility on OSV demand. global averages, it is important to note that this would have

Saudi Aramco has awarded more than $6 billion in been a lot higher had it not been for the aforementioned offshore EPC contracts year to date, which equates to entry of the Chinese abandoned newbuilds. one of the strongest years on record for its long-term

Newbuilding activity is starting to pick up after a pro- agreement contracting market. Notably, Subsea 7 an- longed period of constrained fnancials for many shipown- nounced a new award in September, which covers EPCI ers, yet the overall regional feet age suggests signifcant of more than 100 kilometers of pipelines, topside modi- feet renewal required towards the end of the decade to fcations and hook-up activities, valued between $750 follow persistently strict age requirements enforced by the million and $1.25 billion with offshore construction in

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