Middle East Offshore Sector Faces Structural Risks Amid Contract Terminations and Rising Costs
The offshore sector in the Middle East Gulf is currently facing significant structural risks due to a combination of contract terminations, increased insurance costs, and threats to engineering, procurement, and construction (EPC) projects. According to the latest HORIZON Monthly Offshore report by MSI, while the number of contract terminations for rigs has been limited, the return to pre-conflict operational levels could take several months. This delay is attributed to the need to bring fields back onstream and resume construction projects. Key operators in the Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, and Qatar, have suspended or terminated contracts for offshore support vessels (OSVs). In Qatar, many contracts have been either suspended or terminated, with downtime added to the end of the contract. In the UAE, up to 15 OSVs had their contracts terminated. The Saudi energy sector has been less affected due to its ability to reroute exports through Red Sea infrastructure a... 
