Offshore Supply Industry Reinventing Itself Following Deepest Slump Ever
Participants at major Offshore Supply Industry conference have cut cost, invested in innovation and protected customer base.

From left: Edwin Lampert, Group Managing Editor, Riviera Maritime Media, Johannes Østensjø, John Labdon, Chairman, Riviera Maritime Media.

The annual OSJ Conference held in London this past 8-9 of February 2017 saw participants talking about the first signs of recovery after a very hard downturn.  OSM Maritime Group was represented in a panel session discussing effects of the oil price slump on the industry and what lies ahead.


On the panel, Houston based GulfMark Offshore, operating in excess of 70 Platform Supply Vessels and Anchor Handlers worldwide, was represented by its President & CEO, Quintin W. Kneen.  GulfMark has since 2015 reduced their OPEX by 28% and their G&A by 25% as a response to the sharp fall in demand.  Capital discipline, opportunistic sales of vessels, financial flexibility and the protection of its franchise and customer base were key words in how the company is tackling the ongoing crisis.


Dubai based Topaz Energy’s CEO, René Kofod-Olsen, referred to A.P Möller-Mærsk’s recent announcement of impairing a number of its assets by $2,5 Billion as an example of what must be in store for the industry in order to have asset values match the new reality brought on by the reduced activity and oversupply of vessels.  He also focused on the opportunity for the shipping industry to now give the decision power back to the vessels with new technology and means of communication.


Norwegian yard group VARD’s CEO, Roy Reite, talked with the audience about how the sudden collapse in the OSV construction segment had forced the company to focus on R&D, innovation and development of new concepts.  For VARD, Mr. Reite said, the future lies within vessels and structures for security, seafood, energy and adventure.


OSM Maritime Group was represented by its Chief Commercial Officer, Oddvar Solemsli.  He spoke about how large operators looked to OSM for economy of scale using Farstad as an example, and how smaller companies like Forland Shipping could also see the outsourcing of technical management as an opportunity to create time for management to focus on repositioning and developing their business.  Oddvar then went on to mention how investors wanting to enter the offshore segment could view OSM as a means to achieve operational excellence, reliable cash flow budgets, scalability and economy of scale.  He also touched on how banks with distressed assets could use OSM to reduce and control risk, avoid hurting their balance sheet and influence capital allocation.  Finally, he discussed how OSM is using the ongoing crisis to reinvent itself by repacking its product offerings, using OSERV as an example, entering new segments, exemplified by OSM Drilling, and seeking new alliances, here using the collaboration with audit, consultancy and lawyer giant Deloitte as an illustration.



At the OSJ Awards dinner held during the conference, Johannes Østensjø, founder of Østensjø Rederi, was given the coveted Lifetime Achievement Award for his achievements in the Offshore Supply Industry.  Østensjø Rederi is a valued customer of OSM Maritime Group.  Don't miss Johannes interview from OSJ commenting on this major achievement. Click here to view his interview on Youtube or click here for some additional coverage. 



For a YouTube interview of OSM’s Oddvar Solemsli during the conference, please click this link.