ADIPEC expects more business for offshore, marine services

Abu Dhabi / Emirates Business

The Offshore and Marine industry is expected to see increased business at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), with analysts predicting modest increases in spending for maintenance and production in the oil sector, and significant investment expected for new offshore natural gas projects in the Eastern Mediterranean.
Analysis by consultancy Douglas-Westwood has found that, although investment in new offshore production remains low, compared with pre-2014 levels, the outlook for maintenance, modifications and operations is ‘notably more positive’. Much of the rebound is caused by work orders, that have been delayed, coming back online. Within the GCC area, 2017 has seen Saudi Aramco sign agreements with Abu Dhabi-based National Petroleum Construction Company (NPCC) to purchase four offshore platforms and associated equipment, as well as a separate deal for the supply of 17 offshore jackets – the steel frames that support the platform.
Globally, consultants Wood Mackenzie are predicting renewed exploration and production for deep-water projects, with efficiency improvements having lowered the breakeven price by 20 per cent in the past three years. “We are seeing renewed optimism among companies supporting offshore production, with demand underpinned by an industry that is now more efficient, stabilising prices, and the need to meet anticipated rising demand,” said Ali Khalifa Al Shamsi, Al Yasat CEO and ADIPEC 2017 Chairman. “ADIPEC supports this growth as a market where suppliers can network with purchasing decision makers and generate new business. Its comprehensive strategic and technical conference programmes provide an unrivalled opportunity for specialised knowledge exchange.”
Natural gas is a significant contributor to positive outlook, particularly in MENA, where Egypt is seeing around $27.3bn worth of investments across the Zohr, North Alexandria and Noras gas fields, and 76 new upstream exploration concessions have been signed worth around $1.5bn.