The tide has turned for the offshore market in the Middle East

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Captain Mohamed Al Ali, Senior Vice President of Offshore Logistics at ADNOC Logistics & Services, spoke at the Seatrade Maritime Middle East 2023 Offshore Marine and Workboats Forum and highlighted the positive outlook for the offshore oil and gas industry. Ali reported that the market is set for sustained growth after years of under-investment, with over $70 billion worth of projects set to be awarded in 2022, up over 30% from 2021. He also noted that billions of dollars are being invested in offshore production in Saudi Arabia, Qatar, and the United Arab Emirates, achieving all production targets ahead of schedule to meet future energy needs.

Ali predicted that the offshore market would see an upswing for at least the next two years, fueled by higher capital spending on offshore oil and gas and renewable energy. He also stated that demand for offshore support vessels (OSVs) is strong, with almost every asset class experiencing growth that supports drilling, construction, maintenance, and logistics activities. The OSV sector remains optimistic, and Ali expects OSV spending to grow more than 10% this year year-on-year, leading to higher daily rates and occupancy. With demand for OSVs in the Middle East so high, ships are being enlisted from other regions.

Despite ongoing geopolitical tensions and differing views on the global economic outlook, Ali asserted that he had every reason to be optimistic about the GCC region and the OSV sector. He attributed this positive outlook to the region’s importance as a global energy hub and its commitment to meeting the world’s energy needs. Demand for the policies in the area is forecast to remain strong and even grow in the coming years, according to Ali.

Tags: Offshore Wind,Middle East and Africa,OSVs,Offshore


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