Apr 24: The sharp and inexorable decline in the day rates of Platform Supply Vessels (PSVs) over the last three years is a grim reminder of how bad the situation has been for mostly Indian companies who supply these vessels.
8According to data provided by the industry, we track the deterioration of day rates from 2015 onwards of a 3000 MT PSV of a prominent Indian supplier to illustrate the sorry state of the E&P vessel industry.
8The price has dropped by an astounding 83%
8"The drop in rates is so severe that quite obviously, only marginal pricing principles are at play," the industry source said. "It is a Hobson's choice: keep the vessel idle or keep it going," an industry executive said.
8How long will these abysmally low prices prevail?
8"We have heard that the investments are going up, but they are not reflecting on the day rates," the executive said.
8Marine spread calculation for a vast amount of offshore work that is now going on off the two coasts of India can take advantage of the low PSV rates.
8The point to note however is that the drop in rates has impacted all aspects of the offshore industry and not the PSV industry.
Click on Details for the exact rates

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