Page 12: of Offshore Engineer Magazine (May/Jun 2026)

11 13

MARKETS OSVs

MIDDLE EAST OSV MARKET AT A

CROSSROADS AFTER GULF CONFLICT © JT Jeeraphun / Adobe Stock

Afer several years of strong activity, the Middle East ofshore market has become more volatile, with geopolitical tensions disrupting day- to-day operations. Following US and Israeli military action and subsequent Iranian attacks on neighbouring Gulf states, operators introduced precautionary measures, including temporary rig suspensions and down-manning in Saudi Arabia, the UAE and Qatar.

By Theodor Sørlie, Senior Analyst at Fearnley Offshore Supply

This triggered a sharp short-term slowdown from late rates and higher near-term availability.

February into March. Pre-war, leading macro advisors such as Rystad Energy

The April ceasefre allowed offshore activity to recover expected OSV demand in the region to showcase low gradually, but fxing volumes remain at low volumes com- single-digit growth in 2026. Most industry participants pared the historical average. Fewer active rigs and proj- viewed the healthy EPC market as a key absorber of ton- ect delays have softened OSV demand, prompting some nage, while NOC activity began to plateau, albeit at high operators to seek standby terms or rate reductions. With historic levels. The demand in 2026 is now, somewhat un-

Hormuz transit constrained, owners have had limited re- surprisingly, heavily infuenced by the duration of the war, deployment options, leaving them exposed to lower day- with a worst case 12-month scenario potentially cutting 12 OFFSHORE ENGINEER OEDIGITAL.COM