India and Middle East provide succour for ownersNews // October 2, 2015
Fearnley Offshore Supply AS (FOSAS) says the few bright spots for OSVs in terms of tendering activity reecntly have been the Indian and Middle East markets.
"ONGC are in the process of committing 20 vessels to serve their ongoing production and exploration on the East and West coast," said FOSAS, although it noted that the rates for the contracts that are beingt awarded "barely cover costs." The contracts do, however, provide hard-pressed owners with term utilization in a difficult market.
FOSAS said Saudi Aramco has hit the market with a 14-vessel tender for three years duration and rumours have it that a second tender will follow shortly for another 8-10 vessels.
Some are new positions, but majority are to replace incumbent vessel with newer vessels with better stationkeeping capabilities.
Maersk Oil in Qatar has recently closed two tenders, one for a medium-sized MSV and one tender for five PSVs and two standby vessels, all up against incumbent vessels.
"In addition to these multi-vessel tenders we are seeing steady chartering activity for short to medium term in the Middle East," FOSAS said.