Private equity funds target ME offshore marine market

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Apr 2008

Driven by the strong demand for offshore service vessels across the oil and gas sector and for land reclamation projects in the Middle East, private equity funds and firms are turning their attention to the region's workboats industry, according to a leading financial expert. With deals in other parts of the world drying up because of the credit crunch, the Middle East offshore marine market is seeing the introduction of significant private equity investment and is likely to see "a wave of consolidation in the next few years," says Geir Sjurseth, Managing Director and Global Head of the Offshore Group at DVB Bank, of Germany, which specialises in the global transport market.
He was speaking at Workboats Middle East - the region's only dedicated event of its kind - which opened yesterday  and runs at the Abu Dhabi National Exhibition Centre until Wednesday  under the patronage of Shaikh Hamdan bin Mubarak Al Nahyan, Minister for Public Works and Chairman of the National Transport Authority.
After inaugurating Middle East Workboats, Shaikh Hamdan said: "The show represents an importance platform for the industry in light of current developments and land reclamation underway in Abu Dhabi. There are a large number of marine projects including new islands, gas and oil operations which require marine transport and other related services."
After several strong growth years, substantial war chests have been developed in the region for mergers and acquisitions.  The term workboats covers a range of vessels from offshore supply vessels, barges, dredgers, tugboats and specialised craft. More than 2,000 workboats are docked or repaired in the Middle East. The Workboats Middle East exhibition and conference features more than 100 key suppliers from the region and beyond.

Source: Khaleej Times