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SINGAPORE SHIPREPAIRING, SHIPBUILDING & OFFSHORE INDUSTRIES DIRECTORY 2019/2020
The marine industry is seeing light at the for October 2018–March 2019, Singapore’s
end of the tunnel on improving crude
oil prices. Even though oil prices, a key determinant of the industry’s health, are well off the recent peak of over US$85 a barrel, industry pundits believe that the offshore recovery is still on track, as the offshore industry has become a lot more ef cient.
Norwegian energy research rm Rystadis amongst the most upbeat. In its latest report “After Years of Misery, Strong Outlook for Offshore Operators”, Rystad said that oil and gas operators are planning to sanction at least 100 offshore projects in 2019 after giving the green light to 90-plus projects in 2018. This compares to just 43 offshore projects which were authorised in 2015 when Brent crude fell below US$50 a barrel.
This bodes well for Singapore, a leading centre for shiprepair, oating production storage and of oading (FPSO) conversion and rig construction.
We are already witnessing the rst signs of a revitalised industry. In the business expectations survey of the manufacturing sector
Economic Development Board (EDB) noted, “Within the manufacturing sector, the transport engineering cluster is the most optimistic about business conditions, with a net weighted balance of 21% of rms expecting improvement, compared to a quarter ago. In the marine and offshore engineering segment, the oil and gas- eld equipment manufacturers anticipate more orders on the back of rmer oil prices. The shipyards foresee more ship repairing work while offshore rig orders remain subdued.”
While the order drought for new rigs is not about to end anytime soon because of the supply overhang, Singapore yards have secured increased contracts for ship and rig repair as well as the construction of specialised ships. Industry majors are also leading contenders in mammoth projects, including a lique ed natural gas (LNG) exporting terminal, compressed gas liquidcarriersandFPSOs.
The shiprepair yards have also bene tted from changes in International Maritime Organisation (IMO) regulations on ballast water treatment requirements and the global sulphur cap for marine fuel.
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