OSV Owners Waiting for Better Days in Brazil

With the resumption of oil and gas block tenders in Brazil, including highly valued pre-salt tenders, offshore support vessel (OSV) owners are expecting to get any vessels that are lying by without a contract to soon rejoin the market. However, the owners of the large number of Brazil flagged vessels that were built but did not get contracted or that lost their contract with Petrobras or other players, are looking to at least renegotiate their financing contracts while their assets sit idle.

OSV companies estimate that the segment needs robust actions to defend the Brazilian shipping flag until the effective resumption of hiring, which should only start to be felt in the second half of 2020, due to the time it takes for exploration operations to be launched. A long gap without oil block tenders has significantly hampered fleet growth.

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