Global OSV Orders Reached $ 3.3 Billion in the First Quarter

According to primary statistics, orders for global offshore engineering equipment reached $3.3 billion in the first quarter of 2017, representing an impressive increase compared with less than $400 million in the first quarter of 2016. Considering vessel structure, sales of Floating Production Unit amounted to$2.7 billion including Floating Storage and Regasification Unit (FSRU); orders of OSV were still largely Offshore Construction Vessels with total amount of $600 million; there is still no order for drilling platform. In the view of construction country, Korea poised to resume the successful growth by its advantage on construction of large Floating Production Unit and FSRU, orders reaching nearly $2 billion with market share of nearly 60%; China’s orders were mainly OSVs and two large FSRUs, totaling $1.1 billion with market share of 32%; No order was placed to Singapore from the beginning of 2017.

Judging from orders of global OSV market, indexes of utilization, charter rates and second-hand offshore equipment in operation markets stopped falling; part of offshore equipment index rose slightly; off-hire phenomenon came down significantly; offshore oil and gas project FID and new charter for offshore equipment increased. As downward pressure on oil price still remained and offshore engineering equipment was severely redundant, OSV market was unexpected to be improved in the short term and construction market would be at the bottom for a long period of time.