Offshore players jostle each other for deals as liftboat demand soars

It's the lone bright spot in the muted O&M space.

Ezion used to be the undisputed leader when it comes to building liftboats, which are crucial in servicing oil platforms. Demand for liftboats has increased despite the oil downturn, and Ezion is up for some pretty stiff competition as more offshore players jump into the liftboat space.

According to CIMB, there is room for more liftboat makers in the ASEAN, particularly as there are only around 10 liftboats servicing 1,717 oil platforms in the region compared to 240 units servicing 3,257 platforms in Gulf of Mexico.

Ezion is unlikely to be able to cater to this demand, which means that other players such as Swissco and Technics Oil and Gas can snatch up deals.

“While more competition appears negative for first-mover Ezion, we are of view that the flourishing liftboat demand in ASEAN will be able to cope with more players. Certainly, Ezion would not be able to cater to all the ASEAN liftboat requirements on its own,” said the report.