UAE offshore drilling is trending into deeper waters, and vessel suppliers are adapting to the rising demand.
According to the engineering consultancy Great Waters Maritime managing director Ashik Subahani, the current drilling standard for offshore exploration is 45 to 50 metres, with around 30 jack-up rigs in UAE waters.
However, new standards mean rigs must be able to drill safely at greater depths. That has led to demand for new rigs that are equipped to handle more challenging conditions.
“Operators need a safer vessel as more stringent standards have been implemented, ” Mr Subahani said.
The Abu Dhabi company Gulf Marine Services (GMS) is benefitting from the change, and reported positive results from its self-elevating support vessels (SESVs) in its interim management statement for the period from July 1 to November 4.
“The demand for our SESVs across the Mena region is excellent and the market for our assets in Europe also remains strong with our entire fleet of 10 SESVs currently chartered, ” the GMS chief executive Duncan Anderson said. The company said that 95 per cent of its fleet has been secured by companies through the remainder of 2014. Most recently, GMS announced that one of its vessels had been contracted for the North Sea, an area that has one of the highest operating and safety standard regulations in the industry.
North Sea jack-up vessels must withstand harsh conditions that are not found in the Arabian Gulf such as strong currents, intense winds and high pressure.
GMS secured the first contracts for two of its new-build SESVs. The GMS Enterprise commenced its charger immediately following the completion of the large class vessel, while the enhanced small class rig Pepper remains under construction. It is expected to begin its first charter in the first quarter of 2015 following delivery. The firm will build three new mid-size vessels at its Abu Dhabi facilities.
As one of the leading offshore vessel suppliers in the region, GMS had a net debt of around US$180 million at the end of this year’s third quarter. The company’s current secured backlog is around $547m , a 34 per cent increase from the $361m reported on August 25. “The outlook, driven by our core brownfield oil and gas client base underpins our expectation of continued strong demand going forward,” Mr Anderson said.
“This, together with our ongoing new-build programme, will help maximise opportunities with existing and new clients.”
lgraves@thenational.ae
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