Whilst data relating to volume and geographical location of exploration and production activities is available from various market sources, Ãĸ€˜in-serviceÃĸ€™, decommissioning and particularly repair costs, which are the main indicators of the size of the sub-sea engineering services market, are less readily available, although there is an obvious link between increased exploration and production and these activities.
With respect to the South East Asian market (notably Thailand), it should also be noted that production of gas is far more predominant than oil production and therefore, far less exposed to dramatic price fluctuations such as those experienced in oil production. This is partly attributable to gas being less of a global commodity, being more difficult to transport over long distances than oil, with more localized consumption and less exposure to regional political volatility. Charter rates for sub-sea engineering vessels have remained relatively strong for 2009. The long lead-time on these projects means that it may take a year or two before a slowdown in new projects is evident in earnings. Based on this, demand for sub-sea engineering services is expected to remain comparatively strong.
Mermaid Maritime Public Company Limited
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