Indonesia Offshore Support Vessel Market Outlook to 2028

Indonesia Offshore Support Vessel Market Overview

The Indonesia Offshore Support Vessel Market has seen substantial growth, reflected by Asia Pacific Offshore Support Vessel Market reaching a valuation of USD 4720.40 million in 2023. This growth is primarily driven by increasing offshore exploration and production activities, growing investments in offshore oil and gas projects, and the strategic location of Indonesia, which is rich in natural resources.

Key players in the Indonesia OSV market include PT. Wintermar Offshore Marine Tbk, PT. Logindo Samudramakmur Tbk, PT. Buana Lintas Lautan Tbk, PT. Berlian Laju Tanker Tbk, and PT. Pelayaran Tamarin Samudra Tbk. These companies have established strong footholds in the market through strategic alliances, mergers, and acquisitions, as well as by expanding their fleet capacities to meet the rising demand.

In June 2024, PT. Wintermar Offshore Marine Tbk invested USD 13.9 million out of a planned USD 35 million capex for fleet expansion. The companys fleet of 42 vessels is set to grow with two Heavy Load Barges and one Accommodation Work Barge expected by year-end, addressing increased offshore demand.

Makassar Strait and the Arafura Sea were leading the market in 2023. These regions dominate due to their rich oil and gas reserves and the presence of major offshore exploration projects. The strategic location of these regions, coupled with well-developed port facilities, makes them pivotal to the Indonesia OSV market.

Indonesia Offshore Support Vessel Market Segmentation

The Indonesia Offshore Support Vessel Market is segmented by different factors like by vessel type, by service type and by region.

By Vessel Type: The Indonesia's OSV Market is segmented by vessel type into anchor handling tug supply (AHTS) vessels, platform supply vessels (PSVs), and multi-purpose supply vessels (MPSVs). In 2023, AHTS vessels dominated the market due to their versatility and ability to perform multiple tasks such as towing, anchor handling, and supply operations. The demand for AHTS vessels is driven by their critical role in supporting offshore drilling and production activities.

By Service Type: The OSV Market in Indonesia is segmented by service type into transportation & logistics, maintenance & repair, and subsea services. In 2023, transportation & logistics services held the largest market share. This dominance is attributed to the essential role of OSVs in transporting goods, equipment, and personnel to and from offshore platforms, which is a critical component of offshore operations.

By Region: The Indonesia OSV Market is segmented by region into north, south, east, and west. In 2023, east region dominated the market due to its abundant offshore oil and gas reserves, strategic location, and well-developed port infrastructure, which collectively make it a hub for offshore exploration and production activities.

Indonesia Offshore Support Vessel Market Competitive Landscape

Major Players

Establishment Year

Headquarters

PT. Wintermar Offshore Marine Tbk

1995

Jakarta

PT. Logindo Samudramakmur Tbk

1995

Jakarta

PT. Buana Lintas Lautan Tbk

2005

Jakarta

PT. Berlian Laju Tanker Tbk

1981

Jakarta

PT. Pelayaran Tamarin Samudra Tbk

2006

Jakarta

PT. Logindo Samudramakmur Tbk: PT Logindo Samudramakmur Tbk announced a debt restructuring agreement involving the conversion of its existing secured loan facilities into new loans totaling USD 95.24 million. This restructuring involves a joint guarantee provided by Pacific Radiance Ltd. and its subsidiaries, Alstonia Offshore Pte. Ltd. and Pacific Offshore Pte. Ltd., for up to USD 5 million. The agreement also includes conditions related to management changes and security over shares held by the involved entities. This restructuring is part of the companys financial strategy to manage its obligations effectively.

PT. Pelayaran Tamarin Samudra Tbk: PT Pelayaran Tamarin Samudra Tbk (TAMU) projects a 30.9% revenue growth this year, reaching US$ 14.7 million, up from US$ 11.23 million in 2021, in line with the growing oil service industry. In early 2023, the company secured a contract with PT Pertamina International Shipping (PIS) for the Time-Based Charter Agreement for the Accommodation Work Barge in Poleng, Madura, Indonesia.

PT. Berlian Laju Tanker Tbk:PT Berlian Laju Tanker Tbk (BLTA) achieved operating revenues of USD28.53 million up to the period of September 30, 2023, up from revenues of USD14.37 million in the same period the previous year. And it continues to focus on liquid bulk transportation, providing services for chemicals, oils, and liquefied gases.

Indonesia Offshore Support Vessel Market Analysis

Indonesia Offshore Support Vessel Market Growth Drivers

Increased Offshore Oil and Gas Exploration Activities: In 2024, Indonesia plans to offer 54 potential onshore and offshore oil and gas blocks over 2024-2028 to boost exploration and production. This increase was driven by the discovery of new oil fields in the Makassar Strait and the Arafura Sea. The government's commitment to boosting oil production by 2025, has further fueled demand for Offshore Support Vessels (OSVs) to support these exploration activities.

Expansion of Offshore Wind Projects: The offshore wind energy sector in Indonesia received a substantial boost in 2024. The governments Renewable Energy Development Plan aims to increase the share of renewable energy in the national energy mix, which includes the development of offshore wind farms. This expansion has led to a higher demand for OSVs for installation, maintenance, and logistical support.

Technological Advancements in OSVs: The adoption of advanced technologies in OSVs, such as Dynamic Positioning Systems and remote-operated vehicles, has improved operational efficiency and safety. In 2024, companies upgrade their fleets with these advanced technologies, making OSVs more capable of handling complex offshore operations and driving market growth.

Indonesia Offshore Support Vessel Market Challenges

Regulatory and Environmental Compliance: Strict environmental regulations and compliance requirements pose challenges for OSV operators. In 2024, new regulations aimed at reducing carbon emissions from offshore activities were introduced, requiring significant investments in eco-friendly technologies and practices. Compliance with these regulations increases operational costs and complexity.

Skilled Workforce Shortage: The OSV industry in Indonesia faces a shortage of skilled workforce, particularly in specialized roles such as Dynamic Positioning Officers and engineers. In 2024, the demand for skilled professionals exceeded leading to increased training costs and recruitment challenges for companies operating in the offshore sector.

Indonesia Offshore Support Vessel Market Government Initiatives

Energy and Mineral Resources: In 2024, Indonesias Ministry of Energy and Mineral Resources launched the first oil and gas auction, offering five blocks with substantial resources, including 1.1 tcf of gas in the Pesut Mahakam block. The government aims to boost hydrocarbon exploration, reversing declining output and exploring 68 unexplored hydrocarbon basins.

Training and Development Programs: To address the shortage of skilled workforce in the OSV industry, the Indonesian government introduced specialized training and development programs in 2024. And it indicates that 800,000 seafarers will require upskilling by the mid-2030s, highlighting the urgency for enhanced training programs.

Indonesia Offshore Support Vessel Market Future Outlook

The Indonesia OSV Market is poised for substantial growth by 2028. This growth is anticipated to be driven by continued investment in offshore oil and gas exploration, the development of new offshore wind projects, and government initiatives aimed at boosting maritime infrastructure. Additionally, the adoption of advanced technologies and the expansion of fleet capacities by key players are expected to further stimulate market growth.

Market Trends

Growth in Offshore Wind Energy Projects: Over the next five years, the offshore wind energy sector in Indonesia is expected to witness substantial growth by 2028. This expansion will drive the demand for OSVs for installation, maintenance, and logistical support, contributing to market growth.

Technological Advancements in OSVs: The adoption of advanced technologies such as autonomous vessels and AI-driven navigation systems is anticipated to revolutionize the OSV industry. By 2028, the OSV fleet in Indonesia will be equipped with these advanced technologies, enhancing operational efficiency and safety.
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