Offshore support vessel shortages and strict local content requirements are holding back #subsea projects in Asia. Despite a growing pipeline of projects energy companies wish to develop in Asia, it is becoming harder to find #vessels to support them, particularly for #subsea operations.
Limited #shipyard availability for vessel repairs, demand from offshore renewables, and #supplychain shortages are also limiting #offshore operations, delegates from The Offshore Support Journal Community heard at Riviera’s #OSJAsia2024 Conference, in Singapore.
Kim Heng Ltd chief operating officer for offshore and marine, Justin Anderson Tan, listed challenges in the market for #energy companies seeking to develop oil and gas fields in Asia. Mr Tan said there is a "shortage of vessels to support subsea" operations, plus tightened cabotage rules, a lack of available financing and trained crew.
"There are a pipeline of projects, but holding this back is the supply chain and time to get repairs done," said Mr Tan. "There is a lack of available shipyard space for repairs."
Every nation in southeast Asia has its own #cabotage requirements for crewing, flag, ownership and licensing, "contributing to the shortage in supply of subsea support vessels".
While demand is increasing, there are few new vessels under construction or on order, so #shipowners can expect a stable and sustainable market over the next three years, but oil companies could reduce spending on existing assets and new fields.
Malaysia OSV Owners’ Association (MOSVA) president Jamalludin Obeng said it is time for a fleet renewal in Malaysia as the average age of the 350 OSVs operating in that country is about 12-13 years old.
"If we consider [the state of the fleet in] five years’ time, we would not want the same vessels, constructed nearly 20 years ago, still in operation," said Mr Obeng. This could be the case for vessels chartered on a long-term basis beyond 2030.
There is, however, one sector of the offshore market bucking the trend. Multiple newbuild crew transfer vessels (#CTVs) for offshore #hydrocarbons and #renewables projects are being ordered from and delivered by shipyards.
Penguin International Limited general manager for fleet and commercial operations, George Philip, said there is greater interest in many markets for #crewboats to compete with or replace #helicopters, for transferring offshore personnel and light cargo.
He compared Penguin’s own Flex 42X design of CTVs with helicopters, and discovered these #workboats are more flexible, cheaper to build, quicker to repair and offered better crew comfort. Vessels also have far more carrying capacity for people and cargo and a longer range between refuelling than helicopters.
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