Wintermar Offshore Marine has gained new contracts and readied two more vessels for operation as demand and charter rates rise
The Indonesian owner operates a fleet of more than 48 offshore support vessels (OSVs) on long-term contracts in the spot markets in southeast Asia and the Middle East and has seen a steady increase in demand for its OSVs and in charter rates for these vessels.
Wintermar’s management expects charter rates to rise further through 2023 as OSV availability tightens in its markets. This forecast comes from the improving activity levels seen in 2022 and industry trends to increase offshore oil and gas activities in the Middle East and in Asia.
In Q3 2022, Wintermar gained new contracts for vessels in Indonesia, Brunei and Thailand. Wintermar expects to ready two recently purchased vessels for new offshore contracts and reactivate laid-up platform supply vessels (PSVs) in Q4 2022.
“The remaining two PSVs are still undergoing refitting and reactivation until early 2023,” Wintermar said.
“As demand for OSVs has risen steadily, while operationally ready OSVs worldwide are not easily available, the management is optimistic that charter rates will continue to rise through 2023,” Wintermar said.
The company had contracts in hand, as of the end of September 2022, totalling US$66M.
Wintermar said it would continue to “seek funding to continue purchasing assets to ride the upturn in the cycle.”
In its main market, Indonesia, energy companies are ramping up offshore drilling and development projects. Several projects commenced in Sumatra, the Natuna Sea, Makassar Straits and Papua.
Indonesian Government agency SKK Migas revealed that out of the national plan for 42 exploration wells and 790 development wells to be drilled in 2022, only 43% was realised by June 2022. SKK Migas is tasked with implementing the management of upstream oil and gas business activities in Indonesia under co-operation contracts.
“The higher oil price seems to be creating some urgency to catch up with the plan,” said Wintermar.
The OSV owner has seen rising activity in the Middle East, Africa and southeast Asia.
“There has been an increase in demand for larger numbers of high-tier OSVs like PSVs and anchor handling tugs, for larger drilling campaigns being planned,” Wintermar said.
“In the Middle East, there seems to be a structural shift from onshore to offshore production as new reserves are sought.”
