SINGAPORE, April 22, 2015 /PRNewswire/ -- Talent shortages
and falling oil prices were today pin-pointed as the top challenges
facing the Offshore Marine Industry at Sea Asia's Offshore Marine
Forum.
Secretary General International Maritime Organization Koji
Sekimizu joined offshore industry leaders at the forum to look at
these challenges and debate potential solutions.
Vice President Offshore V.Group Alessandro Ciocchi commented that recruitment,
training and retention are challenges that must be engaged to
ensure the industry can continue to operate safely and
sustainably.
"With over 3400 offshore support vessels (OSVs) at sea today,
the question remains: how do we continue to find qualified crew to
operate these vessels?"
He added that investment in people needs to happen early in
their careers to tackle this training challenge.
"We need to ensure that those coming through the industry have
been provided with enough at-sea training opportunities to ensure
we have a strong pipeline of talent for the future.
"We also need to focus on transferring the knowledge that sits
with long-serving members of the industry to those now joining the
ranks," he said.
The domestic economic policy in a number of markets is calling
for the creation of 'local content' and Mr. Ciocchi said that companies and the
industry must invest in local training and capability programs to
ensure they're able to meet these requirements.
"Local content requires local solutions. This means taking the
time to train local talent in a safe and efficient way and working
with local schools and maritime authorities to raise the capability
of local crews," he concluded.
Managing Director Swire Pacific Offshore Operations (Pte) Ltd
Mr. Neil
Glenn commented that falling oil prices are also creating
significant short-term challenges for operators in the
industry.
"The lower oil prices are making oil and gas operators reduce
their capital and operational expenditure which has a significant
knock-on effect on the offshore industry.
"Day rates for new charters are coming under pressure and the
oil and gas industry is also requesting reduced rates for existing
contracts. This is leading to weaker utilisation and a highly
competitive market environment."
Mr. Glenn said this is creating
overall revenue pressure for players in the industry, adding that
there are three key things that the industry can do to manage these
challenges.
"The industry needs to look at how it can sustainably reduce
costs while maintaining training, safety and quality standards. We
also need to be more stringent in vessel finance discipline and
look at opportunities for consolidation and standardisation so we
can leverage economies of scale," he said.
President Director PT. Logindo Samudra makmur Tbk and Chairman,
Indonesian Shipyard and Offshore Association (IPERINDO) commented
that these revenue pressures are being felt in Indonesia.
"The oil and gas industry in Indonesia slowed last year as a result of the
Presidential elections and the more recent oil price pressures have
meant that there has been no recent improvement. This is putting
pressure on the offshore industry where big projects have been
deferred or delayed.
"At the same time, there's an oversupply of offshore vessels and
charter rates are under pressure from oil and gas companies as well
as the Government which has requested that companies not only look
at future rates but those in place under existing contracts."
He added that Indonesia's
demand for energy will continue to grow and therefore the long-term
outlook for the industry is positive if there is more alignment
between industry players and the Government.
"Indonesia today consumes
around 1.6 million barrels of oil per day and is only able to
produce 800,000 with the rest needing to be imported.
"By 2020, it's expected that with current exploration and
production (E&P) activities, the country could grow local oil
production to 1.5 million barrels but demand will have reached 2
million barrels in the same time frame.
"We need to align and work closely with the Government to ensure
we're able to meet the local energy needs in a way that's
sustainable for both consumers and the industry," he said.
Moving forward, Mr. Glenn added
that players "need to seek to learn, adapt and engage with all
stakeholders in the industry to find out how it can meet their
needs on a sustainable basis."
Sea Asia is a platform where
this takes place.
Seatrade Chairman Chris Hayman
said: "Sea Asia and today's offshore marine forum is an important
platform for all sectors of the industry to come together to debate
challenges and potentially find solutions."
"Today's discussion highlighted the current state-of-play for
the offshore industry and the speakers provided insight into how
challenges and opportunities can be managed," he said.
Sea Asia is taking place
in Singapore until Thursday 23
April. Over 14,000 participants from around 70 countries are
expected to take part in the conference and exhibition.
For more information, please contact:
Sharon Chan
Email: sharon.chan@bbspr.com.sg
Mobile: +65 9759 9528
DID: +65 6239 4107
About Sea Asia
Sea Asia, an international
conference and exhibition for the maritime and offshore industries,
is returning for the 5th edition from 21 to 23 April 2015 at the Marina Bay
Sands®, Singapore. Sea
Asia serves as a focal point for
both the global and local maritime communities to network, explore
new businesses, and showcase the latest maritime innovations,
equipment and services. Co-organised by Seatrade and the Singapore
Maritime Foundation, Sea Asia is an anchor event held in
conjunction with the Singapore Maritime Week and is well-attended
by the most influential and respected leaders in the industry. The
3-day Sea Asia conference will bring forth the latest discussion
and debates on key trends, opportunities and challenges facing the
maritime industry.
Sea Asia is supported by
principal sponsors Anglo-Eastern Ship Management Ltd, DP World UAE
Region, Executive Ship Management, Lloyd's Register, Neptune
Orient Lines (NOL), Sohar Port &
Freezone, as well as sponsors ABS, Admiralty, AXSMARINE, ClassNK,
DNVGL, G Travel, Hempel, JTJB LLP, Keppel Offshore & Marine,
LUKOIL Marine Lubricants, M3 Marine Group Pte Ltd,
Mobil Industrial Lubricants, Pacific International Lines
(Pte) Ltd, PANAMA MARITIME
AUTHORITY, WORLDWIDE LEADER FLAG STATE, PSA Corporation Limited,
QBE INSURANCE (INTERNATIONAL) LIMITED, ,Singtel, The Standard Club
Asia Ltd, Veritas Petroleum Services, and Zamil Offshore.
For more information, please visit www.sea-asia.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
recently 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.sea-asia.com.
Find out more about Seatrade and UBM,
visit http://www.seatrade-global.com/seatrade-global-information/about-seatrade.html and http://ubmemea.com/.
About the Singapore Maritime Foundation
Established in 2004, the Singapore Maritime Foundation (SMF) is
a private sector-led organisation that seeks to develop and promote
Singapore as an International
Maritime Centre (IMC). As the representative voice for the
commercial players of the maritime industry, SMF seeks to forge
strong partnerships with the public and private sectors of the
maritime industry. SMF spearheads initiatives to promote the
diverse clusters of the maritime industry in Singapore and at international frontiers, and
to attract young talents to join the sector. SMF is directed by its
Board of Directors which comprises prominent leaders in the
Singapore maritime community. For
details, visit www.smf.com.sg.
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SOURCE Seatrade Communications