SEA OSV market expansion strategy

Background

• The client is a subsidiary of a national oil company in Southeast Asia and a leading company in the field of energy shipping and marine and logistics services. With a plan to expand its footprint in Southeast Asia, the client appointed Drewry to conduct a study for developing a SEA OSV business expansion strategy. The study included the assessment of the offshore shipping market with a focus on AHTS and PSV segments, competitive analysis as well as the development of an OSV expansion strategy. .

Client Objectives

• To present the market outlook for offshore service vessels (only AHTS and PSV), including the high-level assessment of Harbour Tugs and Accommodation Work barge (AWB).

• To assess the Southeast Asian offshore market including competitive assessment, market outlook and new energy development
  

• To recommend a strategy for OSV expansion

Results achieved

• The offshore market has been trending upwards due to sustained oil prices, making it a good time to invest in this market. However, Drewry also pointed out the volatility and imminent risks, such as peak fossil fuel demand, in this sector.
• Drewry pointed out that the market entry strategy will depend on the client’s desired level of market participation.
• The offshore market is characterised by protectionist policies. While the client benefits from operating in the domestic market, it requires local content in its operations to venture to other countries.
• Drewry analysed the opex benchmark for the client and also provided a scenario-based TC rate forecast.