4th Offshore Support Vessel Conclave

2016
29th January 2016
Hilton Hotel, Mumbai, India

Theme:
Generate opportunities in challenges

Conference
REPORT
Offshore Support Vessel Conference (OSVC) 2016, saw a groundbreaking gathering
of more than 120 prominent industry professionals, thought leaders, researchers
and policymakers from at least 5 countries energizing a movement to work towards
innovation & collaboration within the industry around the globe. Held January 29,
OSVC consisted of a full day power packed program having key sessions addressed by
world class industry experts and government officials that gave the delegates the
opportunity to hear well researched technical presentations & policy updates.
4th Offshore Support Vessel Conclave
2016
Major stakeholders of the offshore support vessel industry gathered at the OSVC 2016
to deliberate on the most pressing concern for the operating companies how to survive
in this low oil price regime. OSVC is one of the leading platform for discussion and debate
amongst industry leaders across the spectrum of the offshore marine industries.
The conference Chairman & Director
(T&OS) SCI Capt. K Devdas during his
welcome speech said that over the
years, the offshore support vessel
segment of shipping has been a
steady performer in comparison to the
other shipping segment like bulk,
tanker, liner etc which are facing a
steep downturn due to global eco-
nomic meltdown. Offshore segment
Capt. K. Devdas
especially the domestic trade in India
Conference Chairman
has largely remained unaffected and
& Director,(T&OS) SCI
steady due to the E&P operations
being carried out in country.
He said that the theme selected for the
Offshore Conclave 2016 “Innovations
& Opportunities in Challenging
Market” is topical. This conclave will
provide an opportunity to discuss and
understand from the industry stal-
warts the ways and means to over-
come the challenges, which can be
made possible by new innovative
concept and by focusing on niche
opportunities within the offshore
segment. The Offshore Conclave
provides a bird's eye view on various
innovative concepts and opportuni-
ties for overcoming the futuristic
challenges in offshore industry he
told.
Citing the challenges facing the
industry he said that during the year
2015 the world witnessed the biggest
slump in the oil prices and the trend is
projected to continue in the year 2016.
As the oil prices hover around US$ 30
to US $ 40 per barrel, the E&P
Companies are expected to imple-
ment spending cuts on their new
explorations. The world E&P spend-
ing is projected to fall by 17%
year–on–year during year 2016 & the
charter rates have come under
pressure. The offshore market in India
will be competitive & availability and
retention of trained manpower in
offshore sector will be a challenge he
said.
Showing the brighter side of the
industry during his presentation Capt.
Devdas said that ONGC which is the
largest E&P Company in India is
expected to go ahead with its planned
E&P activities. The new development
like notification of new offshore wind
energy policy by Indian Government
will create demand for offshore
vessels in India. He said that the focus
by vessel owners shall be on acquir-
ing vessels which can perform multi-
purpose roles like a PSV which can be
converted into a Well Stimulation
vessel.
He concluded by saying that the
offshore operators should focus on
improving their operational efficien-
cies by innovative solutions like
adopting new fuel efficient propulsion
systems, hull designs and under
water hull paints & usage of alternate
fuels like LNG for vessel operations.

Torbjørn Holthe, Norwegian Consulate
General, spoke about the significance
Norway has in India's shipping and
offshore businesses. With the
Norwegian Consulate reopening in
Mumbai this year, talks are on to
enhance bilateral relations between the
two countries to push innovation,
technology and tourism. He also
confirmed that India is one market where
you should expect Norway to continue to
increase its investments significantly
over time.
“Norway has already invested 8.5bn
USD in India. The offshore market in
India is important for the Norwegian
market as well. This enhanced bilateral
relationship will open a two-way
opportunity for India and Norway,” he
added. He further told that there has
been substantial growth in economic
and commercial relations between India
and Norway in recent years, especially in
areas such as oil and gas, shipping and
maritime industries, renewable energy,
offshore projects and the service sector.
4th Offshore Support Vessel Conclave
2016
Chief Guest of the function A K Gupta, MD, India Ports
Global Pvt. Ltd. said that challenges are greater than the
opportunities & we need to generate opportunities in
those challenges.
He told that the bigger picture is, the depressed global
economic scenario & recession has paralysed several
economies, especially the Global GDP growth which is
2.7%. He said that we all are proud to be Indians as things
are going the Indian way & gives all of us immense
pleasure in claiming that despite global economic
slowdown, our GDP growth is over 7%. India is
undoubtedly the prominent emerging economy, enjoying
global attention. The Government is working with a well
charted road map. The inflation has eased & fall in crude
oil prices has given our economy lot of comfort. The trust
in Indian capital markets is good and there has been a
significant rise in foreign direct investments. The World
Bank rating of India in context of “ease of doing business”
is improving. We, the citizens of India are committed to
sustain this growth path.
He further mentioned that India is seen as an Economic
force due to the fact that India is world's 2nd most
populous country having 17% of global population, one of
the fastest growing economy 7.2%, prominent emerging
economy (USD 6.7Trillion economy, 6.6% global share),
4th largest consumer of energy in the world - one third of
global average, by 2020 largest importer of coal,
renewables 7%, gas 9%, oil 20% (78% crude oil
imported), 4th largest importer of LNG, 3rd largest
economy in terms of purchasing power parity, 7th largest
economy by nominal GDP, increasing economic
prosperity, rising consumption, Overall steady growth in
exim trade (with some exceptions), exports falling mainly
due to petroleum products, forex reserves 350 bn USD (I
USD = Rs 68), FDI and FII witnessed significant rise, there
is faith in Indian capital markets
4th Offshore Support Vessel Conclave
2016
India is the only bright spot in depressed
global economic scenario. The Indian
economy is growing at 7.2% against
global growth of 2.7%. China's
growth was driven by exports, while
Indian growth is domestic driven he
stated.
India has the fastest growing service
sector. Trade deficit is narrowing due
to fall in oil prices, CAD is coming down,
TII have gone 9 ranks up in 2013 we were at
94th and today 85th – long way to go, ease of
doing business rating by WB improved from 140 to
130.
Everything depends on energy including
industrialisation. India is an energy starved
country and we need same to fuel our growth to
sustain our growth trajectory.
In this back drop let us see what are the challenges
for the OSVs ? Surely its fortunes are linked with oil
price. The global oil price plunge has caught
almost all industry analysts by surprise. No one
could predict such a fall. It has created havoc in
the energy markets and seems as though that low
oil prices are there to stay. From USD 150 per
barrel in 2008 (not very far) to USD 30 now. OPEC
meeting of December 2015 has yielded no
positive results. The oil exporting countries have
opted not to cut the production to shore up the oil
prices. The effort is pump as much as possible and
grow market share in the process. Patience is the
key word. Obviously not everyone in OPEC is
happy.
Is Exploration & Production still viable? Despite
low oil prices, several national oil companies,
though putting a squeeze, but have no plans of
major cuts in E&P activities. Oil companies have
taken a judicious call in suspending activities in
certain areas, but by enlarge major projects
remains on course. Only high cost ventures have
been shelved or deferred.
He told that “It is my considered
opinion that Indian off shore and the
gulf region (produces one of the
cheapest oils in the world unlike
North sea) the OSV markets have
somewhat remained insulated or
not suffered as badly as other
regions”. However, there is no
denying that many high end assets are
surplus. Even Low end assets are also
affected. Charter rates have come down. This is
the major challenge for OSV Owners he said.
They have to make adjustments in Design
innovations, Sophisticated vessels – technomax
OSVs – full of technology, well trained crew (NUSI
Academy has taken a first step for dedicated Off
Shore crew training), Improved productivity &
lower operating cost
So far the outlook was grim and uncertain enough
but now another dimension has been added -
Lifting of sanctions from Iran wef 16th January
2016.This will add 500,000 b/d immediately which
is expected to touch 1million b/d within a few
months. This is possibly great news for some as
Iran's long standing plans to have an LNG export
terminal at Bander Tombak will surely see daylight
now. Getting LNG from Iran has been a long
cherished dream for India.
We have so far only talked about oil but let us not
forget the shale shock he mentioned. Henry hub
gas price has fallen from USD 4 to about USD 2.
Long term gas purchase agreements are in
jeopardy. Contracts are being renegotiated.
He concluded by saying that advances in fracking
technology has resulted in spectacular reduction
in production cost. Superior pad drilling
techniques, Smart drill bits which identify cracks in
the rock & Dissolvable plugs are such
technological advances.

Capt Zarir Irani, MD,
Constellation Marine Services
presented his views on on-
board inspections with the aim
of preparing OSVs for optimal
charter hire.“Knowing change is
one thing but being ready to
bring in change is difficult,” he
said.
Capt Irani is based in Dubai but
is a hard-core Indian at heart.
He used case studies and a
quick survey to emphasise how
to attend to inspectors. He
articulated the need to have a
competent Master in place to
avoid major mishaps.
4th Offshore Support Vessel Conclave
2016
Arve Williksen during his presentation highlighted "Marine
Broadband Radio can provide a stable and seamless
communication link between vessels, survey vessel and
operation control room. Through MBR we can transmit the
hydrographic data, voice and video from the vessel to the
shore at the same time. Moreover this can also be used for
configuration of the survey equipment's as well as to control
multiple launches remotely, with minimum operators at the
vessels to control. In all these processes MBR enhances
safety and situational awareness.”
During the session, Mr Ramanathan N, CEO, Tebma
Shipyard- highlighted the fact that Chinese shipyards had
been delivering OSVs at very cheap rates, something that is a
major contributory factor for the crisis in the offshore industry.
Capt Purnendu Shorey- Co-founder and Partner, Offing-
enthralled the audience with a presentation on ways to reach
mariners with the use of technology to make them aware of
the opportunities in the offshore industry.
The OSVC witnessed a presentation by Mr Ajay Chitnis, Head
– Human Resources, Administration and Training, GOL
Offshore, who was super annuating from his professional
career on the very same day.
4th Offshore Support Vessel Conclave

2016

The conclave was a grand success. Delegates reaped the opportunity to

network. The OSVC formed the right platform for industry leaders to meet,
interact and share knowledge on combating the challenges in the offshore
market.
The conference culminated with an evening reception hosted by the
organizers at the Hilton Hotel where delegates were able to unwind and
draw the last conclusions of this gathering & most important for this
function is it brings decision makers and key industry players together.
 4th Offshore Support Vessel Conclave

2016

GLIMPSES
2016
4th Offshore Support Vessel Conclave

2016
Feedback from Attendees:
>>>
I found the sessions I attended both interesting and rewarding. This was my first OSVC conference,
and I had foreseen presentations with very pessimistic conclusions. I left the conference - however -
in a more optimistic mood than I had expected. It was refreshing to hear participants who saw
challenges and also opportunities in a market with falling oil prices
-- Torbjørn Holthe, Consul General of Royal Norwegian Consulate General in Mumbai

>>>
The show very good, I meet many interesting people working in the industry
-- Arve Williksen, Area Sales Manager, Middle East & Asia, Kongsberg Maritime, Seatex

>>>
OSVC is a well thought out conference with right balance of topics related to business, technical,
regulatory issues. The contents of conference capture present scenario and also has a glimpse of
what is waiting for industry in future. The speakers are well prepared for their talk and presentation.
Overall its an excellent experience being part of this conference
-- Anand V. Sharma, Director, Mantrana Maritime Advisory Pvt. Ltd.

>>>
Our heartiest congratulations for a successful OSV Conference
-- Gaurav Chhabra, Project Director – Technical Sales and Business Development, ARI Simulation

Offshore Support Vessel Conclave

Mohit Kapoor
Conference Director
Contact: +91 9769 345 348
Email:mohit@ojme.net