Offshore vessel values and recovery time…

I have been having a break and I’m skiing so have been quiet… But I read this article from Bloomberg today and noted this comment:

“We are sowing the seeds for potential instability in the future and more volatility, ” Jaeggi said. In three to four years, “you won’t be able to satisfy demand with short-cycle barrels.”

Even if Mr Jaeggi from Mercuria is right, and he is somewhat conflicted in his view, if you discount the OpEx of an underutilised offshore support vessel by three years I am sure the number you arrive at is dramatically lower that most owners/shareholders downside scenario at the moment.

Would DBS and OCBC for example underwrite the running costs of the Lewek Constellation at c. USD 15k per day (excluding dry docking costs) until project work is bid at 2020?

I’ll have lots to say next week…

5 thoughts on “Offshore vessel values and recovery time…

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