OSV day rent will continue to decline

It is reported that, due to the continued downturn in oil prices, oil companies are working to support the ship (OSV) ship owners to seek more price concessions. BP (BP) CEO Dudley Bob said, in order to deal with the problem of oil prices, BP is slowing down the drilling project, and asked the owner of the OSV to reduce the daily rent.
Since the beginning of this year, BP has reduced the cost of 15%, next year, BP hopes to achieve a similar reduction in the cost of similar size. Dudley revealed that the BP will be in the next 6 months to 60% of the oil well service costs to re tender. By 2017, all capital spending plans will be reduced from 2600000000 to $2400000000 to $1700000000 in early 2015.
In the oil company’s overall capital spending, OSV only a small part of the. However, the competitive nature of the OSV market allows customers to have the pricing power. Some analysts pointed out that, due to the market downturn, the customer demand OSV ship owners will be reduced to 30% to 10% days rent; after the expiration of the 1 OSV lease, the charter party to re negotiate with the owner or the owner of the ship rent or rent.
For OSV owners, the short term rent is not likely to rise. August of this year, Tidewater CEO Platt Jaffrey said, OSV market outlook is expected to remain in the doldrums, OSV day rent is still under pressure. The second quarter of this year, Tidewater’s OSV average rent of about $17000, compared to the same period last year fell 8%.
In addition, another OSV owner Offshore GulfMark has also pointed out in the second quarter results report, global OSV average daily rent fell by 24% last year, to about $16000. GulfMark is expected, the third quarter OSV average daily rent will also decline from 5% to 10%.
Source: international ship network