The Assignment / Client’s Problem
- To provide a detailed assessment of the North Sea SAT diving sector to aid the company’s internal planning and support financial processes
- Collate stakeholder views (i.e. E&P companies, competitors) regarding anticipated recovery of the North Sea IRM market
Westwood’s Approach & Analysis
- Comprehensive macro-economic review encompassing oil price scenarios that form the foundation of the reference, high and low cases for outputs
- Use of proprietary in-house offshore and subsea database to build a bottom up demand model, isolating SAT DSV requirements based on select criterion such as water depth, operating conditions and operator preferences
- Tracking of North Sea DSV supply by vessel, capturing asset mobilization in and out of the region in order to provide a holistic view of supply dynamics
- Outlook on utilisation & dayrates by oil price scenario, taking into consideration total supply-led, and competitive supply-led utilisation
- Leverage past North Sea subsea vessel engagements with leading contractors, enabling the delivery of unparalleled commercial and operational insight on demand/supply balance as well as rates and utilisation
- Fleet benchmarking based on key specifications such as age, number of SAT divers, accommodation capacity, crane size and NORSOK compliance,
The Outcome & Benefit
- Concluded that exposure to the growing North Sea decommissioning sector in addition to its traditional O&G offering provided an upside to the business
- Highlighted the shift in market dynamics towards a buyer centric market, resulting in the anticipated decoupling of dayrates from utilisation
- Recent lay-ups and market exits have helped to “right-size” the market. However, soft market conditions, coupled with spare supply capacity will continue to keep utilisation and dayrates suppressed