Greater China

DSIC warns jack-up demand is dropping

Dalian: The offshore market is not very optimistic this year, delegates were told at the MarineMoney Offshore event at Dalian this morning.

“The demand for jack-up rigs has dropped 25% in the first half of this year comparing with the same period of 2013, also there are more orders from speculative investors,” said Yu Fengping, president of Dalian Shipbuilding Industry Corporation (DSIC), a major shipbuilder in China.

Currently DSIC is tightening its cooperation with Sinosure, a state-run policy-oriented insurance company to better deal with the current market situation.

“Sinosure is playing more imporatant roles in the development of the Chinese offshore industry, it helps the shipyards avoid loss of payment default and catch orders with heavy tail payment terms,” Yu said.

According to Yu, DSIC Offshore is targeting an annual sales volume of $1.6bn this year, and it will move its FPSO construction to DSIC Marine Services where it has better facilities.

DSIC Offshore currently has 28 projects under construction. [26/06/14]

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