Singapore: While generally optimistic on offshore prospects in the region, a top financier has warned larger platform supply vessels are “overbought”. Speaking as a promotion to April’s Sea Asia event in Singapore, Geir Sjurseth, managing director and global head, offshore support group, and general manager of DVB Group Merchant Bank (Asia), pointed out: “Another real threat to a sustainable and healthy market going forward is the massive yard capacity now focusing on building various offshore equipment and vessels – at slightly falling and very competitive prices.”
The Asia Pacific region in particular saw “reasonable” utilisation in 2012 but rates did not increase much, he said. “Some tenders are out for mid-2013 already. This suggests an improving market. While oil majors prefer sophisticated tonnage, national oil companies still regularly employ vessels from local owners with smaller and older fleets.”
He noted Malaysian shipyards were gaining ground in the construction of offshore vessels but considered that “local and state-owned shipyards in Indonesia have yet to be accepted in the international market.”
Sjurseth said that prospects are good overall for the offshore industry in the Asia region. “Still, a cautious approach to newbuild contracting, focus on longterm employment, and a prudent financial asset liability management have never been more important.” [08/03/13]
