Beauty & Style | Thursday 4 June, 2015 1:39 am |

Middle East region bucks international trend with 14% increased E&P spend - Offshore Marine & Work Boats event to evaluate impact of lower oil prices on maritime industry

Seatrade Offshore Marine & Workboats Middle East 2015 - the region’s leading event for the workboat and offshore marine industries - marks its return to the Abu Dhabi National Exhibition Centre (ADNEC) on 5-7 October.

The biennual three-day exhibition and conference returns to the UAE, providing a platform for industry professionals to discuss the latest techniques to address the increasingly multifaceted production projects taking place in a variety of remote and shallow water locations and the broad range of complex construction projects.

“Large international technology-led companies, with advanced drilling and offshore services are demanding more sophisticated fleets to compete for their lucrative contracts. However the nature of the world energy markets is changing and that could impact the number of projects available,” said Vanessa Stephens, Managing Director, Middle East & Indian Subcontinent.

The opening keynote session will focus specifically on the evaluation of the Gulf region’s dynamic but complex offshore marine industry, in particular the correlation between the low oil price and its effect on exploration and production (E&P) project spending.

Currently Abu Dhabi National Oil Company ADNOC, is investing US$ 25 billion in offshore oil fields to achieve a part of the UAE energy strategy of increasing its output to 3.5 million barrels per day by 2018, up from the UAE’s current production of 2.8 million barrels per day. Indeed in an effort to improve productivity and efficiency, ADNOC is understood to be considering the construction of more offshore oil islands.

“Research by Barclay’s indicates that international oil companies (IOCs) in the Middle East would increase their E&P 2015 budget spend by over 14%, bucking the worldwide international trend, as those in Saudi Arabia and the UAE would be more willing to accept lower sales prices, because in part, production costs are between $10 and $20 per barrel, compared with much higher shale oil production costs in the US,” commented Stephens.

However in the meantime the worldwide international trend is forecast by Barclays to decline 9% this year, although some other areas have increased E&P spending including Latin America and Russia, which according to Citigroup energy analysts are up 13% and 11% respectively.

In 2013 E&P spending worldwide hit a record of $644 billion, a 7% increase over the previous year’s $604 billion. Due to falling oil revenues E&P global capital expenditures are now expected to drop to $571 billion in 2015, according to Cowen and Co.’s annual study of 476 oil and gas companies’ E&P capex budgets.

“The study assumed an average West Texas Intermediate (WTI) price of $70 per barrel, when in actual fact the average forecast for this year by the US Energy Information Administration (EIA) is $52.48. Only next year (2016) does the EIA expect oil prices to reach an average of $70 per barrel. So that figure could easily drop by a further $28 billion or more,” said Stephens.

Other sessions this year include a Leaders’ Forum; the Seatrade Technology Forum; a Finance Forum as well as two special regional ‘power hours’ about operational issues in the Caspian with another dedicated to Africa.

The 2015 chapter will build on the success of the 2013, which generated $850 million in onsite orders; welcomed almost 5,000 participants (a 46% increase over 2011) from 54 countries, 211 exhibiting companies and increased its floor space by 8% to nearly 4,000 square metres. The 2015 showcase has already sold 80% of the 4,680 square metres of exhibition space reserved this year, signing up over 165 exhibitors to date.
-Ends-

Photo caption: Offshore supply vessel HOS Shooting Star

For more information and event updates, contact Emma Howell, Head of Marketing, Middle East, Seatrade. Tel: +44 1206 545121;
or log on to www.seatradeoffshoremarine.com.

About Seatrade
Seatrade provides a range of global events, websites and publications that covers every aspect of the cruise and maritime industries, bringing together key people to encourage innovation and to produce powerful learning, networking and promotional platforms.

Founded in 1970, Seatrade was acquired in 2014 by UBM, the world's second largest media and event organiser. Seatrade sits with the UBM EMEA, which connects people and creates opportunities for companies to develop new business, meet customers, launch new products, promote brands and expand markets.

Operating in over 23 countries, UBM EMEA organizes many of the world's largest, most important exhibitions, conferences, awards, directories, websites and publications in a wide variety of industries.

For full details about this event, visit: www.seatradeoffshoremarine.com