Dire Need of NNS Offshore Accommodation: Analyst

By George Backwell
Monday, July 14, 2014
Offshore workers: File photo

Declining North Sea production and increasingly mature assets are expected to drive demand for offshore accommodation support, with the attributed maintenance, refurbishment and shutdown work requiring additional personnel-on-board and workshop capacity, according to Douglas-Westwood in their 'DW Monday' analysis.

However, the harsh met ocean conditions of the northern North Sea (NNS) ultimately limit Operator choice to two types of accommodation - jackup barges and semisubs – due to the greater stability and safety offered.
 
Despite growing demand for semisub units, the sector is plagued by constrained global supply and limited availability, placing upward pressure on day rates. This is having a significant impact on contract costs in the NNS, with day rates typically ranging from $200-350k. Additionally, Operators are placing contracts several years in advance to ensure maintenance or construction schedules are satisfied. This is forcing Operators to seek more efficient contracting practices, either through unit sharing agreements or securing units on an annual basis.

Notably; although costs continue to rise, a key emerging trend in the floating accommodation sector is employee welfare. IOCs are using their global footprints to help drive the adoption of the ‘quality equals efficiency’ concept. This is now being mirrored in the NNS, where several large Operators and service contractors have identified a trend between ‘spanner time’ – hours worked by offshore personnel – and the quality of worker accommodation. While this may incur greater costs in terms of unit day rates, the cost advantages gained from reduced downtime and improved worker efficiency could make this increased expenditure worthwhile.

The industry is screaming for offshore accommodation capable of working in harsh conditions. Although the market will see 11 new units delivered between 2015-2016, continued growth in demand for accommodation semisubs, intensified by unit retirement, will further constrain supply. We are already seeing the market respond with new orders; however, will this be enough to offset growing demand pressures?

Source: Douglas-Westwood, London
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Adani Ports Income Up by 15%

Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer and part of Adani Group, today announced the financial results for the quarter

Shipping Corporation Q3 Profit Surges

The Shipping Corporation of India (SCI) declared its unaudited financial results for the quarter ended 31st December 2015 posting a net profit of Rs. 59.66 crores as against a net profit of Rs.

Ice Condition 3 for Delaware Bay

The Captain of the Port (COTP), Delaware Bay is notifying mariners that Ice Condition 3 has been set for the Port which includes the Delaware Bay and River, the C&D Canal,

Shipbuilding

James Troop Supplies Engines for 3 Naval Vessels

Liverpool City Region (UK) based ship engine specialist James Troop & Co has won an order to supply Volvo Penta diesel engines for three European naval vessels being built on Merseyside.

OSV Delivered to MC2 in Dubai

Marine Core & Charter LLC (MC2) headquartered in Dubai has taken delivery of the new build PETRA-1, the first of two, 45-meter Fast Offshore Support Vessels in

Six New VLCCs Marks the Start of a Busy Delivery Year

2016 is off to a flying start when it comes to delivering brand new VLCCs from shipyards in South Korea and China to owners and investor across the globe, says a report BIMCO.

Offshore

Eni, Exxon, Statoil Win Irish Offshore O&G Licences

The Irish government said on Thursday it had awarded oil and gas licences to companies including oil majors Eni, Exxon and Statoil , allowing them to explore for hydrocarbons off the coast of Ireland.

Maersk Drilling Posts Record Profit

Maersk Drilling delivered the best result ever with a profit of USD 751m (USD 478m) in 2015 generating a ROIC of 9.3% (7.1%). The result was positively impacted

Update on Seagull Mobile apps for Crew

The Seagull mobile app for crew training status is set to revolutionise the way seafarers track their training records and receive critical safety alerts, by making

Offshore Energy

Eni, Exxon, Statoil Win Irish Offshore O&G Licences

The Irish government said on Thursday it had awarded oil and gas licences to companies including oil majors Eni, Exxon and Statoil , allowing them to explore for hydrocarbons off the coast of Ireland.

Neptune Awarded Kitan Contract

Neptune has been awarded an air diving services contract by Technip Oceania Pty Ltd (“Technip”) for the Kitan disconnection project. The project is offshore

SBM Offshore: US Authorities Reopen Corruption Probe

SBM Offshore, the world's top oil production ship leasing company, said on Wednesday that U.S. authorities had re-opened an inquiry into bribery allegations involving the Dutch company.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1149 sec (9 req/sec)