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2 OFFSHORE SUPPORT VESSEL MARKET By Type (Anchor Handling, Towing and Supply Vessel, Platform Supply Vessel, Multi-Purpose Service Vessel, Crew Vessels, Standby and Rescue Vessels, Others), By Geography (North America, South America, Asia-Pacific, Europe, West & South Africa, Middle East and ROW) GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, analyze, and forecast the global Offshore Support Vessel (OSV) market on the basis of type and region To provide detailed information on major factors influencing the growth of the market (drivers, restraints, opportunities, industry specific challenges, winning imperatives, and burning issues) To strategically analyze the OSV market with respect to expansion in revenue, vessel count (both demand and supply sides), growth trends, future expansions, and contribution to the market To project the market size of OSV and its different types in regions such as North America, South America, Europe, Asia-Pacific, the Middle East, South and West Africa, and Rest of the World (RoW) To analyze market opportunities for stakeholders by identifying high-growth segments of the OSV business To identify and profile key players of the OSV industry To track and analyze competitive developments such as expansions, new product launches, partnerships and agreements, acquisitions, and new segment initiatives by prominent players of the OSV market 1.2 MARKET DEFINITION ANCHOR HANDLING, TOWING VESSELS Anchor Handling, Towing Vessels or AHTS are the most utilised vessels in offshore platforms. They provide assistance for deepwater anchor handling and towing operations. Winch and engine competence of AHTS determines power of the vessel. All AHTS are equipped with a winch, capable of lifting a barge or other OSV anchors PLATFORM SUPPORT VES SEL Platform Support Vessel is exclusively designed for transporting supplies and equipment to and from offshore installations. These vessels carry general cargo (mainly in containers). PSVs have a flexible in terms of space, which enhances cargo carrying capacity MULTI-PURPOSE SUPPORT VESS EL Multi-Purpose Support Vessel (MPSV) offers an extensive range of maintenance and supply functions in the offshore oil-field industry. These vessels offer refined equipment and facilities such as dynamic positioning, fire-fighting, cranes, moonpools, and helipads STANDBY AND RESCUE V ESSELS Standby and Rescue Vessels perform duties like waiting by offshore installations, in case of emergencies, to pick up people. They are equipped with helipad, fire fighting equipment and oil recovery equipment. 2

5 1.2.5 CREW VESSEL Crew vessels are specially designed to provide high speed crew and cargo movement for offshore oil & gas exploration. Cargo includes deck freight, and below-deck load/cargo such as fuel and water. 1.3 MARKET SCOPE MARKET COVERED The OSV market covers the value and volume of different types of offshore support vessels, such as Anchor Handling, Towing, and Supply (AHTS), Platform Support Vessel (PSV), and Multi-purpose Service Vessel (MPSV) among others. The report also covers major offshore regions, which have a huge market for OSVs owing to increased oil & gas exploration and production activities. This report categorizes the OSV market into the following segments: FIGURE 1 MARKETS COVERED: GLOBAL OSV MARKET OSV Market, by Type Anchor handling, towing, and supply vessel Platform support vessel Multi-purpose service vessel Standby and rescue vessel Crew vessel Others* (Diving Support Vessel, Remotely Operated Vessel, Fast Support Intervention Vessel, Seismic Survey Vessel, Well Intervention Vessel, and Well Stimulation Vessel) OSV Market, by Region North America South America Europe Asia-Pacific Middle East South & West Africa Rest of the World Source: MarketsandMarkets Analysis 3

6 2 RESEARCH METHODOLOGY This research study involved the usage of extensive secondary sources: directories, including databases such as International Energy Agency (IEA), papers, offshore support services magazines and publications, Factiva, OneSource, company annual reports and presentations, and government websites of major countries. The primary research has been conducted with offshore support vessel manufacturers and operators, oil field operators, and government agencies in order to verify sales estimates and selling prices to identify and collect information that would be useful for this extensive technical, market-oriented, and commercial study of the global OSV market. The primary sources are mainly several industry experts from core and related industries and preferred suppliers, manufacturers, administrators, solution providers, technology developers, alliances, standards and certification organizations from companies, and organizations related to all the segments of this industry s value chain. All the primary sources have been interviewed to obtain and verify critical qualitative and quantitative information as well as assess future prospects. The following figure shows the market research methodology applied for making this report on the global OSV market. FIGURE 2 OSV MARKET: RESEARCH METHODOLOGY HISTORICAL DATA FOR THE OFFSHORE SUPPORT VESSEL MARKET Offshore Support Vessel Trends Market Share AHTS, PSV, MPSV, Standby & Rescue Vessel, Crew Vessel Competitive Landscape Offshore Vessel Count (Supply & Demand) OSV Value Chain Investment Trends Geographic Usage Pattern Market Drivers: Market Restraints: Market Opportunity: Increase in E&P activities Increase in offshore rigs High entry barrier to new players High day rates for offshore support vessels High oil prices will result in more offshore development INFLUENCING FACTORS (Market Trends and Dynamics) Market Challenge: High operational risk Burning Issue: Lack of technical professionals in offshore industry Industry Trends: Increasing offshore support vessel usage in other geographies Partnerships, Agreements, & Contracts: More than 50% deals in the last three years New Product Launches: More than 20% new product launches in the last three years Geographic Analysis FORECASTING Historical Data of the Market Impact Analysis of Market Trends Vessel Count (demand), Market Size & Forecast by Type Vessel Count (demand), Market Size & Forecast by Geography Arrive at the Market Size, Share, and CAGR for the Offshore Support Vessel Market 4

7 2.1 MARKET SIZE ESTIMATION Top-down and bottom-up approaches have been used to estimate and validate the size of the global market. The current market size and sales per player have been estimated using annual sales data taken from press releases of offshore support vessel companies, offshore vessel associations, shipping associations, and EIA, and confirmed with primary respondents. Day rate for each vessel has been taken for representative products from their respective companies. Using secondary sources, such as directories, industry publications, and databases, the key players in the OSV market have been identified. Historic data has been also collected from different oil & gas associations, shipping associations, and company websites. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study. FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH Bottom-up Approach (Segmental Analysis) Global Market Value Global Offshore Support Vessel Market Total Market Size ($Million) = Summation of (Average day rate for each type of vessel in every region X total number of vessels (Demand Side) X 365) Summation of A X B of all Regions Average day rate per Region for Each Type of Vessel (B) Primary: Demand & Supply Side Experts Secondary: Annual Reports, Presentations, Press Releases, Journals, Paid Databases, and MarketsandMarkets Repository Geographical Split to the Number of operating vessels (A) Number of OSVs operating, Globally Primary: Demand and Supply Side Experts Secondary: Annual Reports, Presentations, Press Release, Journals, Paid Databases, and MarketsandMarkets Repository The bottom-up procedure has been implemented for data extracted from secondary research to validate the obtained market segment revenues. Market shares have then been estimated for each company to verify revenue shares, used earlier in the bottom-up procedure. With the data triangulation procedure and validation of data through primaries, exact values of the overall parent market and individual market size have been determined and confirmed in this study. 5

8 3 EXECUTIVE SUMMARY Offshore support vessels are called upon to perform specific tasks, and have created a niché for themselves within the OSV market. Currently, OSVs have enlarged cargo capacity, navigation bridge visibility, large accommodations, advanced propulsion, and automation systems. This is all due to the growing offshore and E&P activities across the globe. OSVs have evolved considerably in terms of diversification, global operation, and water-depth capabilities. The OSV market is estimated to be valued at $ million in 2014 and is projected to reach $ million by 2019 at a CAGR of % from 2014 to The growth of the OSV market is due to an increase in offshore well exploration and production activities and discoveries of new deepwater oilfields in the offshore regions of the world. However, factors such as high operational risks and lack of technological advancement in vessels are restraining the growth of the market. The figure below shows the market share of different types of OSVs in 2014 and FIGURE 4 OSV MARKET SHARE (VALUE), BY TYPE, 2014 & CAGR % ( ) AHTS PSV MPSV Standby & Rescue Vessel Crew Vessel Others* $Million - - Source: Related Research Publications, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis Other*: Includes DSV, ROV, FSIV, seismic survey vessel, well stimulation vessel, and well intervention vessel. The OSV market is expected to grow by $29,524.7 million from 2014 to On the basis of type, AHTS vessel dominated with a market share of 55% in The main driver for the rise of AHTS is the increase in the day rate price of AHTS vessels, especially in North America and Europe. 6

9 3.1 SOUTH & WEST AFRICA & SOUTH AMERICA ARE THE EMERGING MARKETS FOR OSV The global OSV count (demand) is estimated to reach 8,190 by The vessel count (demand) is projected to grow at a CAGR of 8.7% between 2014 and Increase in the number of exploration and production activities in regions of Angola, Nigeria, and Ghana drive the demand for OSVs in West Africa. The discovery of new potential oilfields in the Brazilian basins will propel the demand for OSVs in South America. The figure below shows the aggregate demand for different types of OSVs by FIGURE 5 DEMAND FOR OSV WILL BE THE HIGHEST IN WEST AFRICA BY 2019 Market Size 2019 OSV 100% Market Share (%) Growth %, CAGR North America South America Europe Asia-Pacific Middle East West & South Africa AHTS RoW PSV Others Source: Press Releases, Annual Reports, Expert Interviews, and MarketsandMarkets Analysis *Others: Include MPSV, standby and rescue vessel, crew vessel, DSV, FSIV, ROV, well intervention vessel, and seismic survey vessel 7

10 CHALLENGE OPPORTUNITIES RESTRAINTS DRIVERS OFFSHORE SUPPORT VESSEL MARKET- GLOBAL FORECAST TO MARKET OVERVIEW 4.1 MARKET DYNAMICS Market drivers of OSVs are entirely influenced by the offshore oil & gas and subsea industries. The increase in oil & gas exploration from seabed contributes towards the growth of the OSV market. FIGURE 6 INCREASING GROWTH IN DRILLING & EXPLORATION ACTIVITIES WILL SPUR THE DEMAND FOR OSVS D Increase in E&P activities Rise in the global demand of oil and gas Increase in offshore and subsea spending Increase in offshore rigs R High entry barrier High day rates for offshore support vessels O High oil prices will result in more offshore development Increasing offshore oil & gas reserves C High operational risk Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis OPPORTUNITIES H i g h o i l p r i c e s w i l l r e s u l t i n m o r e o f f s h o r e d e v e l o p m e n t Higher oil prices make it more economically reasonable to drill for deposits in deeper and more remote waters. The average drilling rig day rates, which are driven by demand for offshore drilling contracts by oil companies, are from $200,000 to $250,000 for rigs that can operate at water depths of feet. Due to this, the OSV market is also growing at a decent pace. Increase in crude prices not only compel oil & gas companies to drill for more oil, but also enable them to explore new deposits. This will accelerate the demand for offshore vessels and create a huge requirement for support vessels in the near future. Earlier, due to the global financial crisis, an increase in the demand for oil in countries such as China had sustained rising oil &gas prices. This price increase will drive the demand for the OSV market in the upcoming years. 8

11 I n c r e a s i n g o f f s h o r e o i l & g a s r e s e r v e s Offshore reserves are experiencing an increase due to the rise in the demand for oil & gas. With an increase in offshore reserves, drilling and exploration activities are expected to witness a high growth in the offshore drilling platforms, which would accelerate the OSV market G l o b a l o f f s h o r e o i l & g a s r e s e r v e s, b y r e g i o n In 2012, the total global offshore oil & gas reserves stood at billion barrels of oil equivalent (BOE). The Middle Eastern region accounted for the highest share, holding 55% of the total offshore reserves, followed by Sub-Saharan Africa with 11% of offshore reserves. The other major offshore regions include the US GOM, Europe, Brazil, Latin America, and Asia-Pacific. The figure below shows the global offshore reserves by region as of FIGURE 7 OFFSHORE OIL & GAS RESERVES, BY REGION, 2012 (BILLION BOE) Middle East Sub-Saharan Africa Asia-Pacific Eastern Europe and FSU Brazil North West Europe Latin America Mediterranean Mexico US GOM North America Source: Related Research Publication, Government Publication, and MarketsandMarkets Analysis 9

12 4.2 IMPACT OF MARKET DYNAMICS The current market dynamics are likely to change, depending on government regulations, technological innovations, investments, and improvements in E&P activities. In the following table, their impact on the OSV market has been judged as high, moderate, or low from 2014 to TABLE 1 IMPACT OF MARKET DYNAMICS Factor Market Dynamics Importance ( ) Driver Driver Driver Driver Increase in E&P activities Rise in the global demand for oil and gas Increase in offshore and subsea spending Increase in offshore rigs Restraint High entry barriers to new players Restraint Opportunity Opportunity High day rates for support vessels High oil prices will result in more offshore development Increasing offshore oil & gas reserves Challenge Burning Issue High operational risk Lack of technical professionals in the offshore industry *Key: Very High High Moderate Low Very Low *Note: The definitions for the Market Importance would remain the same as the Key seen here for the rest of the moon charts. Source: MarketsandMarkets Analysis Growth in exploration & production activities is a key factor driving the OSV market, and is likely to remain so for the next five years. Increasing energy demand is also leading to the growth of the market. There has been a continuous increase in the rig count in offshore basins, which strongly impacts the OSV market. Lack of technical professionals in the offshore industry will have a moderate impact on the OSV market. 10

13 5 INDUSTRY TRENDS 5.1 OSV MARKET CHAIN OIL FIELD OPERATORS The end-user industry of fully functional OSV is oil fields or offshore platforms. An offshore field s operations include platform support, anchor handling, rescue operations, crew transfers, and general utility services among others. Some of the key oil field operators include Statoil (Norway), Chevron (U.S.), Total Oil (France), and British Petroleum (U.K.) among others. These key players deploy different types of offshore support vessels over the life cycle of an offshore oil & gas field, which has four stages, namely exploration, development, production, and decommissioning. The figure below shows the type of OSVs deployed in different stages of an oil & gas field. FIGURE 8 OSV DEPLOYED OVER THE LIFE CYCLE OF AN OFFSORE OIL & GAS FIELD EXPLORATION DEVELOPMENT PRODUCTION DECOMMISSIONING Period 1-3 years 2-4 years 5-50 years Till oilfield depletion AHTS AHTS PSV AHTS PSV PSV AHTS PSV Type of OSV deployed Seismic survey vessel Crew vessel DSV Seismic survey vessel Utility vessel Well intervention vessel Utility vessel Crew vessel DSV Utility vessel Source: Press Releases and MarketsandMarkets Analysis 11

14 6 OFFSHORE SUPPORT VESSEL MARKET, BY TYPE 6.1 OSV VESSEL COUNT (DEMAND) In the last decade, the OSV industry has witnesses a significant growth in the demand for offshore vessels, especially AHTS and PSV OSV MARKET VESSEL CO UNT, BY TYPE, (DEMAND) To meet the growing demand for oil & gas, there has been tremendous increase in the demand for oil rigs, number of platforms, and Floating Production Storage and Offloading (FPSO) systems. The demand for OSV grows with rise in oil rigs, number of platforms, and FPSO systems. The offshore support vessel count (demand) is increasing with a rise in deepwater exploration activities. The table below shows the vessel count (demand) for different types of OSVs from 2012 to TABLE 2 OSV VESSEL COUNT, BY TYPE, (DEMAND) Type e 2019-p CAGR % ( ) AHTS 9 PSV 9 MPSV 9 Standby & Rescue Vessel 9 Crew Vessel 9 Others 9 Total 9 e-estimated, p-projected Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis *Others include DSV, FSIV, ROV, seismic survey vessel, well intervention vessel, and well simulation vessel. The total OSV vessel count (demand), by type, is estimated to reach, growing at a CAGR of % from 2014 to Increase in oil requirement is propelling the demand for more offshore platforms and towing ships. AHTS is expected to dominate the market with a total of in It is estimated to reach by 2019, at a CAGR of % during the forecast period. It is followed by PSV, which is estimated to reach a total of by 2019, at a CAGR of % from 2014 to

15 The figure below shows the CAGR of different types of OSVs between 2014 and FIGURE 9 AHTS VESSEL IS EXPECTED TO GROW AT THE FASTEST RATE OVER THE NEXT FIVE YEARS Units AHTS PSV MPSV Standby & Rescue Vessels Crew Vessels Others Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis *Others include DSV, FSIV, ROV, seismic survey vessel, well intervention vessel, and well simulation vessel OSV VESSEL COUNT (SU PPLY), BY TYPE, The growing demand for oil & gas has increased the demand for OSVs as well. To fulfill this, a large number of OSV manufacturers are coming up with new and improved vessel types. The supply for these vessels is provided in accordance with the requirement for specialized vessels. The supply count is also growing dayby-day to cater to the increasing demand for OSVs in the deepwater and ultra-deepwater exploration activities. The supply of OSVs is always on a higher side as compared to demand; the use of these supplied OSVs increases the utilization rate of OSVs. 13

16 The table below shows the vessel count (supply) for different types of OSVs from 2012 to TABLE 3 OSV MARKET VESSEL COUNT, BY TYPE, (SUPPLY) Type e 2019-p CAGR % ( ) AHTS 9 PSV 9 Others 9 Total 9 e-estimated, p-projected Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis *Others include MPSV, crew vessel, standby and rescue vessel, DSV, FSIV, ROV, seismic survey vessel, well intervention vessel, and well simulation vessel. The AHTS segment leads the OSV vessel count (supply), and is estimated to grow at a CAGR of % during the forecast period, to reach by The supply of AHTS and PSV vessels depend on their demand in exploration areas. The PSV market is estimated to reach by 2019, growing at a CAGR of % from 2014 to The overall OSV vessel count (supply) is projected to reach by OSV UTILIZATION RATE, The utilization rate for the overall OSV depends on its demand in accordance with the supply of the type of a vessel. The utilization rate for OSV varies for different types of vessels. The OSVs utilization rate for 2014 is estimated to be around %, which is going to be % by Considering all the types of OSVs used globally, a steady growth can be seen in the utilization rate of OSVs from 2012 to The table below shows utilization rate of OSVs from 2012 to TABLE 4 OSV MARKET UTILIZATION RATE, Particulars e 2019-p Supply Demand Utilization (%) e-estimated, p-projected Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis The utilization rate for OSV in 2012 was %. It has increased to % in 2013, and is estimated to reach % in the year In 2012, OSV supply was vessels. It is estimated to reach vessels in

17 7 OFFSHORE SUPPORT VESSEL MARKET, BY REGION OSV MARKET, VESSEL C OUNT (DEMAND), BY RE GION, The demand for OSV is on a high due to an increase in the rig count and potential offshore oilfields. The Asia-Pacific region held the highest share of % of the total OSV vessel count (demand) in This region was followed by North America and South America. Offshore activities in the basins of Malaysia, Indonesia, and Thailand have increased the demand for OSVs in Asia-Pacific. The figure below shows vessel count (demand), by region, from 2014 to FIGURE 10 VESSEL COUNT (DEMAND) IN SOUTH AMERICA IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD No. of Vessels CAGR: North America South America Europe Asia-Pacific Middle East West & South Africa RoW Source: Press Releases, Expert Interviews and MarketsandMarkets Analysis The total OSV count (demand) is estimated to grow at a CAGR of % from 2014 to The total OSV count (demand) is projected to reach by 2019, from in Potential oilfields in deepwater basins drive the market for OSVs in the world. 15

18 The table below shows the OSV market vessel count (demand), by region, from 2012 to TABLE 5 OSV MARKET, VESSEL COUNT, BY REGION, (DEMAND) Region e 2019-p CAGR % ( ) North America 9 South America 9 Europe 9 Asia-Pacific 9 Middle East 9 West & South Africa 9 RoW 9 Total 9 e-estimated, p-projected Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis The OSV demand in Asia-Pacific is estimated to grow at a CAGR of % between 2014 and The vessel count is estimated to reach by The vessel count in North America and South America was and in 2013, respectively. The increase in the demand for OSVs is attributed to the growth of exploration activities in Gulf of Mexico, the North Sea, offshore basins of Southeast Asia, and South and West Africa OSV MARKET, VESSEL C OUNT (SUPPLY), BY RE GION, The supply of OSV is fairly dependent on the OSV required for different operational purposes of E&P activities. As the demand for OSVs in Asia-Pacific is more, the supply is also more. This tells the utilization rate of OSVs in the region. The table below shows the OSV market vessel count (supply), by region from 2012 to TABLE 6 OSV MARKET VESSEL COUNT, BY REGION, (SUPPLY) Region e 2019-p CAGR % ( ) North America 9 South America 9 Europe 9 Asia-Pacific 9 Middle East 9 West & South Africa 9 RoW 9 Total 9 e-estimated, p-projected Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis The OSV market was led by Asia-Pacific in The supply count of vessel in Asia-Pacific is estimated to grow at a CAGR of % from 2014 to 2019, to reach by South American vessel count (supply) is projected to reach by The overall OSV market supply is estimated to reach by 2019, from in

19 7.2 ASIA-PACIFIC INDUSTRY TREND Asia-Pacific countries such as Vietnam, Malaysia, Thailand, and Australia have increased their E&P activities in offshore areas in the recent past. As land and shallow water reserves are matured, most oil & gas activities have shifted to deepwater. Deepwater exploration and production activities have increased in countries such as Malaysia. OSVs count is also growing in the region due to an increase in the number of vessel manufacturers in the market. European offshore companies are shifting towards Chinese manufacturers given the need for cost efficiency MARKET ANALYSIS Asia-Pacific is the dominating OSV market in the world; it is becoming an important region for oil & gas exploration and drilling. The increased deepwater E&P activities in Southeast Asia and rise in the number of rig counts drive the OSV market in Asia-Pacific. The table below shows the Asia-Pacific OSV market vessel count (demand), by type, from 2012 to TABLE 7 ASIA-PACIFIC: OSV VESSEL COUNT, BY TYPE, (DEMAND) Type e 2019-p CAGR % ( ) AHTS 9 PSV 9 MPSV 9 Standby & Rescue Vessel 9 Crew Vessel 9 Others 9 Total 9 e-estimated, p-projected *Others include DSV, FSIV, ROV, seismic survey vessel, well intervention vessel, and well simulation vessel. Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis AHTS accounted for a share of % of the total OSV vessel count (demand) in The AHTS vessel is expected to reach a vessel count (demand) of by 2019, up from in The AHTS market is estimated to grow at a CAGR of % from 2014 to The increase in demand for OSV is due to the use of AHTS in the offshore rigs of Asia-Pacific. The table below shows the Asia-Pacific OSV market vessel count (supply), by type, from 2012 to TABLE 8 ASIA-PACIFIC: OSV VESSEL COUNT, BY TYPE, (SUPPLY) Type e 2019-p CAGR % ( ) AHTS 9 PSV 9 Others 9 Total 9 e-estimated, p-projected *Others include MPSV, Crew Vessel, DSV, FSIV, well intervention vessel, and seismic survey vessel. 17

20 Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis The total Asia-Pacific OSV count (supply) was in The Asia-Pacific vessel count (supply) was dominated by AHTS in 2013, and will continue to do so in the coming years. The supply for AHTS has increased in deepwater regions of Malaysia, Indonesia, and Thailand. The AHT vessel count (supply) is estimated to reach by 2019, from in The table below shows the Asia-Pacific OSV market size, by type, from 2012 to TABLE 9 ASIA-PACIFIC: OSV MARKET SIZE, BY TYPE, ($MILLION) Type e 2019-p CAGR % ( ) AHTS 9 PSV 9 MPSV 9 Standby & Rescue Vessel 9 Crew Vessel 9 Others 9 Total 9 e-estimated, p-projected *Others include DSV, FSIV, ROV, seismic survey vessel, well intervention vessel, and well simulation vessel. Source: Annual Reports, Press Releases, Expert Interviews, and MarketsandMarkets Analysis The AHTS and PSV markets in North America together accounted for $ million in AHTS vessels accounted for $ million in It is estimated to grow at a CAGR of % between 2014 and E&P activities in deepwater oilfields such as Benjarong, Janglau, and Laverda drive the AHTS and PSV markets in Asia-Pacific. 18

21 8 COMPETITIVE LANDSCAPE 8.1 MARKET SHARE ANALYSIS, OFFSHORE SUPPORT VESSELS MARKET (BY KEY PLAYERS) The offshore support vessels market was dominated by Vroon Group (the Netherlands), Farstad Shipping ASA (Norway), REM Maritime AS (Norway), and Swire Group Ltd. (U.K.) with market shares of %, %, %, and %, respectively in There are many other global players in the market such as Tidewater Inc. (U.S.), Bourbon SA (France), The Maersk Group (Denmark), and Seacor Marine LLC (U.S.) among others. FIGURE 11 OSV MARKET SHARE ANALYSIS, 2013 Signed a charter agreement with Polarcus DMCC (U.A.E) Signed an agreement with BP (U.K.) for PSV and ERRV on the U.K. continental shift Others include Tidewater Inc., The Maersk Group, Bourbon SA, and Siem Offshore Vroon Group (the Netherlands) Farstad Shipping ASA (Norway) Rem Maritime AS (Norway) Swire Group Ltd. (U.K.) Top 4 companies accounted for a share of ~% of OSV market in terms of developments Others Source: Expert Interviews and MarketsandMarkets Analysis Vroon Group (the Netherlands) holds one of the leading positions in the OSV market. The company adopted strategies for its future growth such as contracts and agreements, launching new products to strengthen its product portfolio and expansions. Farstad Shipping ASA (Norway) is also a leading player in the OSV market. The different strategies adopted by other market players are explained in the below sections. 19

22 8.1.1 MERGERS & ACQUISITIO NS Mergers and acquisitions covered a share of % of the total strategies followed by leading market players. Regional market expansion is one of the key objectives behind companies adopting this strategy. Most players have acquired a local company to make their market position stronger in this highly competitive market. TABLE 10 MERGERS & ACQUISITIONS, Date Approach Description Importance July 2013 June 2013 June 2013 February 2012 November 2011 July 2011 Swire Group Ltd. (U.K.) & POLYNESIA LINE (U.S.) The Maersk Group (Denmark), MSC Mediterranean Shipping Company S.A. (Switzerland), and CMA CGM (France) Tidewater Inc. (U.S.) & Troms Offshore Supply AS (Norway) Swire Group Ltd. (U.K.) & Seabed AS (Norway) Farstad Shipping ASA (Norway) & Petroserv S.A. (Brazil) The Maersk Group (Denmark) & SK Energy (South Korea) Swire Group has acquired POLYNESIA LINE (USA). Maersk Line, MSC Mediterranean Shipping Company S.A. (Switzerland), and CMA CGM (France) agreed in principle to establish a longterm operational alliance on East West trades, called the P3 Network. The aim is to improve and optimize operations and service offerings. The P3 Network operates a capacity of million TEU (initially vessels on loops) on three trade lanes: Asia Europe, Trans-Pacific, and Trans- Atlantic. Tidewater acquired Troms Offshore Supply AS (Norway), a supply vessel operator, which owned and operated four deepwater PSVs and has two additional deepwater PSVs under construction. Swire Pacific Offshore Operations (Pte) Limited (SPO) (Singapore) acquired Seabed AS (Norway). Farstad Shipping ASA acquired 50% share of BOS Navegação S.A. (Brazil) from Petroserv S.A. This strategic acquisition has improved the company s market position in the Brazilian market. Maersk A/S (the Company), completed the acquisition of stakes in three Brazilian blocks from SK Energy (South Korea) for $ billion. Source: Company Website, Company Publications, and Press Releases 20

23 Revenue ($Million) OFFSHORE SUPPORT VESSEL MARKET- GLOBAL FORECAST TO COMPANY PROFILES 9.1 B0URBON SA BUSINESS OVERVIEW Founded in 1948 and headquartered at France, Bourbon SA provides offshore oil services vessels in Paris. It is considered to be one of the leading players of the offshore shipping industry, providing ship borne supplies to oil and oil-related companies all over the world. The company operates its business through three segments: marine services, subsea services, and others. The major services provided by the company involve offshore anchor handling, towing, and positioning; seismic support; engineering and management of offshore operations; and inspection, maintenance, and repair among others. Some of its major subsidiaries include Bourbon Offshore Surf (Paris), Sonasurf International Ship (Portugal), Bourbon Offshore Interoil Ship (Portugal), Bourbon Ships AS (Norway), and Bourbon Supply Asia PTE. Ltd. (Singapore) FIGURE 12 BOURBON SA: BUSINESS OVERVIEW COMPANY AT A GLANCE RECENT FINANCIALS 2013 Founded: 1948 Headquarter: Paris, France Employees: 6,650 Revenue: $ Million Ownership: Public; EPA: GBB GEOGRAPHIC REVENUE MIX BUSINESS REVENUE MIX $29,402 $ Mn Million Africa Europe & Mediterranean/Middle East American Continent Asia $29,402 $ Million Mn Marine Services (Deep) Marine Services (Shallow) Marine Services (Crew) Subsea Services Other Source: Company Website, Annual Reports, and MarketsandMarkets Analysis 21

24 9.1.2 SERVICE OFFERINGS The company offers the following services: Service Offshore Anchor Handling, Towing, and Positioning Offshore Supply and Equipment Transport Description Towing, anchor handling, and positioning operations are carried out by AHTS vessels. They feature powerful engines and winches. Among them, the Bourbon Liberty and, with a bollard pull of to t, perform the most complex operations in the most hostile environments. These services involve two main equipment; PSV and SSV. PSVs make it possible to supply offshore installations with equipment and special products. These vessels ensure- Equipment delivery is made through the extensive deck area Large product storage capacity Transportation of various products such as diesel, base oil, fresh and industrial water, and methanol Support of Offshore Terminals and Floating Production, Storage, and Offloading Units (FPSOs) Personnel Transport The Bourbon fleet of terminal tugs is devoted for assistance operations, standby, and support of offshore oil & gas terminals, and is specialized in assisting FPSOs. Bourbon offers its clients a safe, reliable, and economical alternative for helicopters for different types of missions: Transporting personnel between oil fields and logistic bases onshore, and between platforms of an oil field Transporting parcels and light equipment SSVs perform essential tasks for the proper continuation of seismic operations- Refueling Seismic Support Vessels Water and provision resupply Transferring wastewater and oily residues Assisting the protection of operations (collision protection and clearing transit routes among others) Emergency towing ability to ensure the continuity of seismic operations Assistance and support at sea during maintenance operations Engineering & Management of Operations Subsea Well Services This service offers specialized project engineering with innovative services, covering all the subsea needs of operators and contractors in deepwater. This delicate operation requires thorough risk assessment and coordination with the client. With this integrated service offering, Bourbon is able to provide custom solutions to its customers and contractors: Installing jumpers and Xmas Trees Inspection, Maintenance, and Repair Deepwater visual inspections and mapping Installing equipment at great depths Supporting one or more ROVs Diving support - laying cables, umbilicals, hoses, or rigid pipes Subsea interventions - well stimulation support Drilling support - platform maintenance support Support in case of accidents or fire in oil fields 22

25 Transporting parcels of various sizes Turnkey contracts Source: Company Website and Annual Report KEY STRATEGIES Bourbon SA is one of the leading players in the offshore support vessel industry. It has one of the largest fleet of vessels in operation and construction, and has invested $ billion in innovative and cost-efficient vessels. The company is focussing on becoming a global leader in this industry through building larger and more powerful high standard-based vessels, to cater to the requirement of the deepwater market. The company has fast established itself in this area and has achieved operational success in the recent past. In line with this strategy, the company is involved with ControlCutter (Norway) and Oceaneering International (U.S.) to supply new and advanced vessels, under new contracts and agreements. The company entered into various partnerships to enhance its product portfolio. Recently, the company entered into a joint venture with Oceanteam Shipping (Norway) to launch a product, North Ocean series, with a new design and more storage capacity. It also partnered with CGG (France) to launch the first series of SSV, equipped with hybrid propulsion RECENT DEVELOPMENTS Date Approach Description Importance October 2014 September 2014 September 2014 November 2013 October 2013 May 2013 June 2012 Contracts & Agreements Contracts & Agreements Joint Venture Partnership Capital Gain Expansion Investment Bourbon Offshore (Norway) signed a contract with ControlCutter (Norway) to deliver a new-build anchor-handling tug supply vessel. Oceaneering International, Inc. (U.S.) extended its contract with Bourbon SA to supply Bourbon Oceanteam ' till February Oceanteam Shipping (Norway) and Bourbon Offshore (Norway) entered into a joint venture to introduce the North Ocean series. The ship is meters at length with a meters beam. Its excellent seafaring capabilities, one tons and one tons fully heave compensated cranes, moon pool, m free deck space, and accommodation enables CSV Bourbon Ocean team, to be utilized for field support, construction, installation, and IRM support. Bourbon in partnership with CGG, introduced the first series of seismic support vessels, equipped with hybrid propulsion. Bourbon sold three vessels, including a tug, an MPSV from the Subsea Services fleet, and a PSV worth $ million, generating a total capital gain of approximately $ million. Bourbon expanded its range of services in the Caribbean. The services include crew transportation, cargo transportation, and technical expertise for which they opened a new logistics and technical center on the east coast of Trinidad. Bourbon received a loan of $ million from French banks to invest in new and improved support vessels. Source: Company Website and Other Press Releases 23

26 9.1.5 SWOT ANALYSIS FIGURE 13 BOURBON AS: SWOT ANALYSIS STRENGTHS The company has a strong geographic presence and cater with marine services in all geographies With all type of offshore support vessels available, the company has a strong product portfolio S W WEAKNESSES Lack of technological developments in the existing fleet More offshore deep water drilling activities in West Africa and Southeast Asia Improved vessels with highly advanced technology to cater deep water service O Bourbon SA T Intense competition across support vessel segment Political instability hampers the market in the countries such as Angola where most of the market comes OPPORTUNITIES THREATS Source: Company Website, Annual Reports, Press Releases, and MarketsandMarkets Analysis MNM VIEW Bourbon SA is one of the leading offshore support vessel providers in the world. The company, through its organic developments, aims to increase its customer base as well as financials by supplying various fleets to its customers. For instance, the company signed a contract to supply the newbuild AHTS vessel to ControlCutter (Norway). The company also aims to increase its product portfolio by entering into a joint venture with Oceanteam Shipping (Norway). With this agreement, the company has launched a new vessel North Ocean series. The company, aiming to increase its geographical presence, expanded its range of services in the Caribbean by opening new logistics and technical center in Trinidad. This would help the company to widen its reach to international customers. 24

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