Abu Dhabi oil services company Gulf Marine Services (GMS) has added a new vessel to its fleet to increase operational efficiencies and cut costs of production in a prolonged low-oil price environment.
The hydrocarbon industry is coming to grips with the new normal in oil prices that range between US$40 and $50 per barrel from $110 two years ago. The pain has been hardest felt in the offshore industry, where costs can be more than 15 per cent higher than onshore operations given the complexity involved in drilling in deepwater.
International oil service companies, such as Schlumberger and Halliburton, have cut jobs as they try to survive the oil price slump.
GMS reported a 28 per cent year-on-year drop in net profit in the first six months ending in June to $110 million.
Budget constraints have led the oil services company to release a solution that will trim production costs and maintenance of offshore assets.
GMS will unveil its E-Class vessel built in Mussaffah, the GMS Evolution, at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) today.
The company said the system, developed in partnership with Norwegian firm Dwellop, will offer cost-effective solutions that have been historically undertaken by more expensive non-propelled drilling rigs. However, the company did not provide estimates on cost savings from the new vessel.
“Using the cantilever system, clients will be able to deploy sooner, have no requirement for tugs and the time spent rigging up, rigging down and lifting backwards and forwards will be removed,” said Duncan Anderson, chief executive of GMS. “Basically, large amount of non-productive time can be saved both for ourselves and our subcontractors.”