Report: Outlook for OSV Industry Looks Bright

According to reports, deepwater oil and gas exploration and production activities by oil majors are likely to pick up steam and go forward with the surging demand and tight supply situation that has pushed crude prices to new highs in recent months. Since the beginning of this year, the Coastal group has booked the sale of one unit of the offshore support vessel. Five other firm orders have also been placed with the Coastal group from customers from the Middle East and Western Europe. Three of these vessels are expected to be delivered this year, it said in its 2005 Annual Report. The favourable conditions of the region's energy and oil transportation markets have led to positive flow-through opportunities for the Coastal group, which is involved in the shipbuilding and ship operations sector. An increase is a reflection of the strong demand for high-powered tugboats and barges of greater capacity on account of sturdy marine transportation activities in the region. Such achievement is attributable to the group's sound product quality and reliability as it relentlessly pays close attention to customers' requirements and market changes. With numerous platforms reported to be installed in Malaysian waters over the next three to five years there is a correspondingly greater need for a wider range of support services to facilitate the endeavor.

At the chartering front, with heightened efficiency driven up by the division's renewed fleet, the group will commit a higher ratio of its fleet to the medium- and long- term charter business with a lower portion operating in the spot market. Source: Business Times