Persian Gulf over-stocked with support vessels, report claims
Analyst VesselsValue has identified a 22% increase in the number of offshore support vessels in the Persian Gulf between January 2014 and July 2016.
This is due to general optimism concerning theMiddle East as a potential growth area for OSV work following the easing of sanctions against Iran, but also new Middle Eastern and Indian players looking at distressed older tonnage as a way into the market. VV cites Hind Offshore’s Lady Grace, Ocean Sparkle’s OSL Triumph, Halani Shipping’s Halani 6, and Tag Offshore’s Tag 20.
Another factor isSaudi Arabia maintaining production levels to avoid losing oil market share.
However, the situation has led to a significant oversupply of OSVs in the area, with many now laid up.
The excess supply has come mainly from the South China Sea and has resulted in intense competition for contracts. VV believes Middle Eastern competition is set to increase further with around 70 vessels set for delivery in the area over the next two years.
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