Middle East oil producers hold the key to Europe’s strategy to reduce its dependence on Russian energy and by ramping up investment
Delegates at Riviera Maritime Media’s Annual Offshore Support Journal Conference, Awards and Exhibition, London, UK, 15 June 2022, heard how the main state-run oil and gas producers in the Middle East have accelerated investment in offshore fields.
ABC Maritime head of offshore George Horsington said Saudi Aramco had hired 26 more jack-up rigs to have 78 on contract by the end of this year, up from 52 in January 2022.
“Another 10 more rigs could be added in 2023,” he said. “Aramco is producing 11M barrels per day (b/d) and is looking to get to 13M b/d.”
Mr Horsington said these extra offshore drilling rigs are increasingly owned by Saudi Arabian state-run companies and would require support from more platform supply vessels (PSVs) and anchor handlers.
Qatar was also investing US$30Bn in new LNG production and export facilities and has returned to being the world’s largest gas exporter.
In the United Arab Emirates, Abu Dhabi National Oil Co (Adnoc) is investing to raise oil production from 4M b/d to 5M b/d by 2030.
“Adnoc is scooping up vessels, buying rigs and plans to build a new LNG export train in Fujairah,” said Mr Horsington.
“In the region, the biggest rig and vessel owners and oil companies are now state owned. States are driving investment and spending in oil and gas services.”
Maritime Strategies International director James Frew said investment would also increase in the North Sea oil and gas sector, with some deferred projects being brought forward.
This is increasing rig utilisation and reactivation of inactive and laid-up vessels.
Energy companies in the North Sea may also need owners to mobilise vessels from other regions or to order newbuildings.
“By 2024, there is the potential of undersupply of PSVs unless vessels are brought in,” said Mr Frew.
V.Ships Brasil general manager Leonardo Freitas, speaking via video link from Brazil, said investment in the Latin American country was accelerating with state-run energy group Petrobras leading the way.
Brazil is producing 3.1M b/d and has more than 12Bn barrels of reserves, much of this in deepwater areas.
Mr Freitas said Petrobras operates 57 floating production systems and plans to add another 14 by 2024.
“The market is picking up due to new deepwater and ultra-deepwater projects,” he said. “There are more international oil companies willing to invest.”
M3 Marine Group chief executive Captain Mike Meade said more offshore energy projects would also be developed in Asia-Pacific, especially in Australia, Indonesia, India, Malaysia, Vietnam and Thailand.
These will provide good levels of employment for vessel owners and drilling rigs.
“There is healthy utilisation of vessels in Asia,” said Capt Meade. “There is a rebound in exploration and production capital investment and new projects.”
