This is due to general optimism concerning the Middle East as a potential growth area for OSV work following the easing of sanctions against Iran, but also new Middle Eastern and Indian players looking at distressed older tonnage as a way into the market. VV cites Hind Offshore’s Lady Grace, Ocean Sparkle’s OSL Triumph, Halani Shipping’s Halani 6, and Tag Offshore’s Tag 20.
Another factor is Saudi Arabia maintaining production levels to avoid losing oil market share.
However, the situation has led to a significant oversupply of OSVs in the area, with many now laid up.
The excess supply has come mainly from the South China Sea and has resulted in intense competition for contracts. VV believes Middle Eastern competition is set to increase further with around 70 vessels set for delivery in the area over the next two years.
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