Global Offshore Projects


Framtiden for offshore-sektoren forblir usikker. Selv om mange forventer en fortsatt høy etterspørsel etter olje, er investeringslysten til de store og nasjonale oljeselskapene for tiden svak, noe som medfører dystre spådommer for fremtiden. Det er usikkert når en forbedring vil skje og hvordan man best kan agere i mellomtiden. I dette nyhetsbrevet ser vi på noen av disse utfordringene, og da spesielt effekten av den nåværende ustabiliteten i byggeprosjekter i Asia og offshoretjenester i de sentrale områdene av Nordsjøen, Brasil, Mexico og Vest-Afrika.

At every level in the world, this is a time of change.  At the macro level, events such as the unrest in the Middle East and Ukraine, as well as numerous conflicts elsewhere involving national power struggles, are having an increasingly direct impact both on our lives and on the businesses that we are engaged in.  At the micro level, the recent dramatic fall in oil prices, to whatever cause it is attributed, has had an immediate effect on the investment decisions currently being taken by the oil majors and by national oil companies relating to offshore exploration and production. 

The future for the offshore sector remains uncertain.  Given that the demand for oil is likely to remain strong, many expect the investment appetite of the oil majors and the national oil companies to return. But it is unclear when that will happen and what should be done in the meantime.In this newsletter we look at these issues. We have left the crystal ball-gazing to Gavin Strachan of Firth Petroleum, and are most grateful to him for his informed contribution.  His is but one view. There are others which are either more optimistic or more pessimistic.  The truth is that no-one really knows how the current changes in the offshore markets will ultimately work out.Faced with these challenging and uncertain conditions, the first response of the market has been to take stock and, where possible, to defer decisions until the long-term outlook becomes clearer.  The ability to impose a change in contractual terms often depends on where offshore projects are being carried out, as well as on the relative bargaining positions of the contracting parties.  For now at least, the emphasis is on renegotiation of current terms rather than on the termination of contracts. This arguably reflects the size and maturity of the offshore market, and is a recognition of the fact that the benefits of co-operation, and the ability to create win-win solutions, often outweigh any short-term advantage to be gained by walking away from contractual commitments.Our newsletter looks at some of the major geographic areas for offshore activity and seeks to identify what we consider to be the important issues. As time passes, priorities might change, but for now we believe that offshore contractors and suppliers can only benefit from access to information about how oil majors and national oil companies are reacting to the current situation in the key areas of the North Sea, Brazil, Mexico and West Africa. We also provide an evaluation of the options available to the industry as it responds to change, and examine how other contractors are dealing with the current challenges facing the market.
We hope that you will find our newsletter interesting and informative.

At every level in the world, this is a time of change.  At the macro level, events such as the unrest in the Middle East and Ukraine, as well as numerous conflicts elsewhere involving national power struggles, are having an increasingly direct impact both on our lives and on the businesses that we are engaged in.  At the micro level, the recent dramatic fall in oil prices, to whatever cause it is attributed, has had an immediate effect on the investment decisions currently being taken by the oil majors and by national oil companies relating to offshore exploration and production. 

The future for the offshore sector remains uncertain.  Given that the demand for oil is likely to remain strong, many expect the investment appetite of the oil majors and the national oil companies to return. But it is unclear when that will happen and what should be done in the meantime.

In this newsletter we look at these issues. We have left the crystal ball-gazing to Gavin Strachan of Firth Petroleum, and are most grateful to him for his informed contribution. His is but one view. There are others which are either more optimistic or more pessimistic.  The truth is that no-one really knows how the current changes in the offshore markets will ultimately work out.

Faced with these challenging and uncertain conditions, the first response of the market has been to take stock and, where possible, to defer decisions until the long-term outlook becomes clearer.  The ability to impose a change in contractual terms often depends on where offshore projects are being carried out, as well as on the relative bargaining positions of the contracting parties.  For now at least, the emphasis is on renegotiation of current terms rather than on the termination of contracts. This arguably reflects the size and maturity of the offshore market, and is a recognition of the fact that the benefits of co-operation, and the ability to create win-win solutions, often outweigh any short-term advantage to be gained by walking away from contractual commitments.

Our newsletter looks at some of the major geographic areas for offshore activity and seeks to identify what we consider to be the important issues. As time passes, priorities might change, but for now we believe that offshore contractors and suppliers can only benefit from access to information about how oil majors and national oil companies are reacting to the current situation in the key areas of the North Sea, Brazil, Mexico and West Africa. We also provide an evaluation of the options available to the industry as it responds to change, and examine how other contractors are dealing with the current challenges facing the market.

We hope that you will find our newsletter interesting and informative. Read it here