Hong Kong can become an ideal location for the OSV Operators and Offshore Oil & Gas Exploration Companies, in the near to long term future, provided concerted efforts by the government and a favorable eco-system is put in place soonest. This proposition is based on four key drivers of strategic importance:

  1. In context of the geographical location of Hong Kong within Asia Pacific region, close proximity to State Companies of PRC, increasing number of international entities engaged in Offshore Oil & Gas Exploration Projects in PRC; and the legal system based on International Maritime Conventions, English Merchant Shipping Act, with Common Law judicial infrastructure, Hong Kong can become an ideal venue of the near future, better than what Singapore is today.
  2. The global projected “Upstream Capex Investments” in 2015 to 2020, initially estimated to be around US$ 500 billion for Onshore and US$700 billion for Offshore. The lion’s share of about 40% of these investments for Asia Pacific. The rate of growth for offshore investment has been steady between 10% p.a. to 15% p.a. since 2010 but curtailed since 2014 due to drop in oil prices. The suspension or postponement of projects does not mean that the target fields will not be developed. In a way it may well work for better and steady future. Hopefully by that time the issues surrounding Spratly Islands would be dissipated.
  3. The vast reserves, untapped and unknown in the Spratly Islands are expected to last for another 100 years after the seismic surveys and geophysical studies are completed, but for the ongoing territorial rights disputes between China and ASEAN countries. Optimistically speaking, these disputes will be resolved within next three (5) to five (10) years, driven by the need for E & P to meet steadily increasing demand for energy, without new nuclear plants coming on-stream.
  4. Hong Kong is ideal for mobilizing such OSVs at short notice to oil fields in countries like China, Thailand, Vietnam, Indonesia, Australia, India and Middle East; similar to the present fleet of about 300+ OSVs managed through Singapore but operating in the region.


The Offshore Support Services Vessels (“OSV”) flotilla comprises of sophisticated and technically advanced, high value assets like: Seismic Survey Vessels, Anchor Handling Towing and Supply Vessels, Drill Ships, Jack-up Rigs, Semi-submersible, Pipe-lay Vessels, Work Barges, Crane Barges, FPSOs and Living Quarter Rigs.

The business operations range from marketing management to financing of investments, fleet management, Charterparty management, supplies and Rigs / Ship repair activities. The strongest attraction will be feasibility and availability of professionals engaged in structuring of contracts like JDA, JOA, PSC, Charterparty etcetera and marine insurances. All transactions are of high value and major contributor to the economy. These segments generate long term employment of people; enhance utilization of supporting ancillary business entities, utilization of sea front / coast line unsuitable for large merchant vessels, and a boost for expansion of trade.

What is being done by Hong Kong toward these projections? Apparently there is no significant move in this direction unless the role is to be fulfilled from PRC.

The critic and comments on the above forecast will be duly appreciated. The readers are welcome to send an email enquiry for further details or consultancy services for feasibility studies and business strategies development, from Tiberias MC, your innovative management consultancy services providers.