Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market Research Report Information By Vessel Type (Heavy Lift Vessels (HLVs), Anchor Handling Tug Supply Vessels (AHTS), Platform Supply Vessels (PSVs), Multipurpose Support Vessels (MSVs), Dive Support Vessels (DSVs), Construction Support Vessels (CSV), Subsea Support Vessels (SSVs), and Others) By Application (Exploration & Production (E&P) Activities, Offshore Rig Moves, Subsea Services, Pipe & Cable Laying, and Others) and By Region -Global Forecast to 2032

Shallow OSV Market for Oil & Gas Industry Market Overview

Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market Size was valued at USD 10655.04 million in 2023. The Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market is projected to grow from USD 11741.85 million in 2024 to USD 21133.08 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.6% during the forecast period (2024 - 2032).

The Latin America, Africa, UK, and Vietnam Shallow Water Offshore Supply Vessels for Oil & Gas Industry Market is witnessing significant growth, driven by the increasing demand for oil & gas globally. As major oil-producing regions ramp up their production levels, the demand for OSVs rises to support various operational activities. For instance, Latin America’s oil production reached approximately 9.4 million barrels per day in 2023, with Brazil and Mexico leading the output.

Similarly, Africa’s production approached 10 million barrels per day, underscoring the critical role of OSVs in these regions. Countries like the UK, with 98% of its crude oil sourced from offshore fields, are heavily reliant on OSVs for exploration, drilling, and support services. The ongoing exploration and development of offshore reserves, particularly in the North Sea, necessitates a robust fleet of support vessels. The natural gas sector is also contributing to the growth of the OSV market. Central and South America’s natural gas output totaled 162 billion cubic meters, indicating a significant need for supply vessels to transport equipment and personnel to offshore gas fields.

Vietnam’s rising role in the oil and gas sector, with production exceeding 313,633 barrels per day, underscores its strategic importance in Southeast Asia. This growth in production has led to an increasing demand for offshore supply vessels (OSVs) as the country expands its offshore exploration and production activities. Significant investments in offshore infrastructure and support services are stimulating the OSV market, reflecting the broader trends within the region's energy sector. As oil and gas companies invest in new projects and technologies, the need for reliable support vessels continues to grow. This trend is further supported by government policies and incentives aimed at boosting domestic oil production and enhancing offshore exploration capabilities. These measures create a favorable environment for OSV operators, encouraging them to expand and modernize their fleets to meet the increasing operational demands.

In a related development, Norwegian offshore vessel owner Solstad Offshore has secured new contracts for four vessels in its fleet, which include three construction support vessels (CSVs) and one anchor handling tug supply (AHTS) vessel. While the identities of the clients remain undisclosed, the company has announced that the gross value of these contracts is approximately NOK 800 million (around $72.9 million). The contracts are set to last for around 600 days, encompassing mobilization and demobilization activities. The four vessels involved in these contracts are owned by Solstad Maritime, in which Solstad Offshore holds a 31.6% interest, following a refinancing process completed in January. This strategic move by Solstad Offshore to secure contracts amid the growing demand for OSVs demonstrates the resilience and potential of the offshore market, particularly in regions like Vietnam where oil and gas exploration is on the rise.

 Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Shallow OSV Market for Oil & Gas Industry Market Trends

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  Growing Demand For Oil & Gas

  
  

The rising demand for oil and gas is driving significant growth in the shallow water offshore supply vessels (OSV) market across Latin America, Africa, the UK, and Vietnam. Africa alone produces nearly 10 million barrels of crude oil per day, contributing approximately 10% to global production. The continent’s oil production totalled approximately 341.5 million metric tons in 2023, led by Nigeria at 73.9 million metric tons, followed closely by Algeria with 60.4 million metric tons, Libya with 59.7 million metric tons, and Angola producing 55.8 million metric tons. Other significant contributors include Egypt, the Republic of Congo, and Gabon.

Offshore Supply Vessels (OSVs) play a crucial role in supporting oil and gas exploration by transporting essential equipment, supplies, and personnel to offshore rigs and platforms. OSVs are purpose-built to carry a wide range of materials, including drilling pipes, chemicals, fuel, water, and other essentials needed for continuous operations. Given the remote location of offshore drilling sites, OSVs are indispensable for ensuring these rigs and platforms are fully stocked, enabling uninterrupted exploration activities. They serve as a logistical backbone for offshore exploration, minimizing delays and optimizing the operational efficiency of rigs that can be hundreds of miles from shore. By ensuring regular and timely delivery of supplies, OSVs help avoid costly shutdowns and keep exploration projects on schedule.

In Africa, Nigeria stands as the continent's largest oil producer, holding approximately 37.5 billion barrels of proven reserves and a production capacity of 2.19 million barrels per day (mbpd). In a recent update shared by the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Chief Executive, Engr. Gbenga Komolafe, Nigeria's average daily production as of July 2024 was reported to be 1.61 mbpd. This production level positions Nigeria as a major player in Africa's oil industry, attracting the interest of international energy companies. The country is also strategically focused on bolstering domestic capacity to reduce its reliance on imported refined products. A significant driver behind this ambition is the region’s broader push for energy security amidst volatile energy markets and heightened geopolitical tensions impacting global supply chains.

West Africa's attractiveness for offshore drilling is underscored by competitive dayrates and high utilization rates for drill ships. Since January 2019, the utilization rate for drill ships has demonstrated significant growth, starting at 65% and reaching an impressive 100% in late 2022, according to data from Westwood. This peak utilization rate reflects a robust demand for floating rigs, a trend that sustained through most of 2023. Although utilization has slightly decreased to around 80% in 2024, West Africa continues to offer some of the longest contract durations and highest dayrates globally, solidifying its role in the international energy landscape and driving the demand for offshore supply vessels.

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  Increased Investment In Exploration Projects Across Latin America, Africa, The Uk, And Vietnam

  
  

The shallow water offshore supply vessels (OSVs) market for the oil and gas industry is witnessing significant growth driven by increased investment in exploration projects across Latin America, Africa, the UK, and Vietnam. A prime example is TotalEnergies' recent agreement to acquire additional stakes in offshore blocks 2913B and 2912 in Namibia, which underscores the rising investment interest in the region. This strategic move not only enhances TotalEnergies’ operational capabilities but also reflects a broader trend of major oil companies increasing their participation in promising offshore ventures. The collaboration with QatarEnergy further illustrates the importance of strategic partnerships in optimizing resource allocation and mitigating risks associated with exploration and production in challenging offshore environments.

In Africa, the Coral Sul FLNG project in Mozambique has achieved a milestone of five million tons of LNG production, highlighting the region’s potential as a key player in the global liquefied natural gas market. The project, which started production in October 2022, has positioned Mozambique as a vital contributor to global energy supplies and economic growth. The significant investments in infrastructure and technology required for such projects create a robust demand for OSVs to support logistics, transportation, and supply chain operations in these offshore developments.

Latin America is also seeing a surge in exploration activities, particularly in Brazil, where the National Petroleum Agency (ANP) anticipates approximately $4.3 billion in investments from 2023 to 2027. With plans for 91 new wells, both onshore and offshore, Brazil's exploration phase is set to become a driving force for OSV demand. The estimated R$9.5 billion allocated for offshore activities demonstrates the focus on enhancing drilling capabilities and supporting sustainable exploration efforts, which are essential for maintaining competitiveness in the oil and gas sector.

In Mexico, Pemex’s ambitious investment plan for 2021-2025, including 399 new projects in shallow and deep water, signifies a commitment to revitalizing the country’s oil and gas landscape. The upgrades to platforms and the installation of extensive pipeline networks will create heightened demand for OSVs capable of supporting these operations. The focus on shallow water projects also aligns with global trends of optimizing resource extraction while minimizing environmental impact, further boosting the market for specialized vessels.

In the UK, the North Sea Transition Deal represents a transformative initiative aimed at fostering cleaner energy opportunities. The projected £14 billion to £16 billion investment in new energy technologies by 2030 will require a robust offshore supply chain, with OSVs playing a pivotal role in supporting both traditional and renewable energy projects. The potential approval of 13 new oil and gas projects in the North Sea underscores the government’s commitment to exploring domestic resources while balancing environmental responsibilities, thereby generating a steady demand for supply vessels.

Vietnam is also positioned as a significant player in the offshore oil and gas market, particularly with ONGC Videsh Ltd’s recent contract extension until 2039. This long-term commitment highlights the growing interest from international firms in Vietnam's offshore potential. The expanding exploration activities in the South China Sea necessitate the deployment of advanced OSVs to facilitate efficient logistics, maintenance, and operational support for offshore drilling activities.

The shallow water offshore supply vessels market for the oil and gas industry in Latin America, Africa, the UK, and Vietnam is propelled by increasing investments in exploration projects, strategic partnerships, and a focus on technological advancements. Major players in the industry are looking to capitalize on the untapped potential of offshore resources while ensuring sustainable practices. As countries continue to enhance their offshore capacities, the OSV market is poised for robust growth, driven by both conventional oil and gas ventures and emerging renewable energy initiatives.

Shallow OSV Market for Oil & Gas Industry Market Segment Insights

Shallow OSV Market for Oil & Gas Industry Market By Vessel Type Insights

Based on the Vessel Type, the Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market has been bifurcated into Heavy Lift Vessels (HLVs), Anchor Handling Tug Supply Vessels (AHTS), Platform Supply Vessels (PSVs), Multipurpose Support Vessels (MSVs), Dive Support Vessels (DSVs), Construction Support Vessels (CSV), Subsea Support Vessels (SSVs), and Others. In 2023, the Anchor Handling Tug Supply Vessels (AHTS) segment drove the Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market by holding a substantial market share during the assessment period. This segment accounted for the largest share of the market in 2023 and is expected to remain dominant during the forecast period.

Anchor Handling Tug Supply Vessels (AHTS) are specialized vessels designed for anchor handling, towing, and positioning tasks, which are essential for stabilizing drilling rigs and platforms in offshore settings. Equipped with powerful winches and towing capabilities, AHTS vessels are utilized to set up and relocate drilling rigs, particularly in areas with varying tidal and current conditions. Their role is critical for ensuring rig stability in shallow waters, where precise and secure anchor placement is necessary.

In addition to their anchoring functions, these vessels provide logistical support by transporting supplies and equipment to rigs and platforms as needed. Their versatility enables them to conduct emergency towing and rescue operations, making them indispensable for operational safety. AHTS vessels are especially important in shallow waters, where anchoring challenges are more complex, and maintaining stability is crucial to prevent rig movement that could disrupt drilling activities or lead to accidents.

Shallow OSV Market for Oil & Gas Industry Market By Application Insights

Based on the Application, the Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market has been bifurcated into Exploration & Production (E&P) Activities, Offshore Rig Moves, Subsea Services, Pipe & Cable Laying, and Others. In 2023, the Exploration & Production (E&P) Activities segment drove the Latin America, Africa, UK, and Vietnam Shallow OSV Market for Oil & Gas Industry Market by holding a substantial market share during the assessment period. This segment accounted for the largest share of the market in 2023 and is expected to remain dominant during the forecast period. Shallow water offshore supply vessels play a vital role in Exploration and Production (E&P) activities within the oil and gas industry. These vessels, including Platform Supply Vessels (PSVs) and Multipurpose Support Vessels (MSVs), are essential for transporting personnel, equipment, and supplies to and from offshore platforms. During the exploration phase, these vessels facilitate geological surveys and drilling operations by delivering necessary tools, drilling fluids, and other materials to remote locations. They also provide accommodation and logistical support for crews working on offshore installations, ensuring that operations run smoothly and efficiently. In the production phase, supply vessels are responsible for the continuous resupply of essential materials, such as chemicals for enhanced oil recovery and maintenance equipment. Their ability to operate in shallow waters allows for quick access to offshore fields, which is crucial for maximizing production efficiency.

Shallow OSV Market for Oil & Gas Industry Market Key Market Players & Competitive Insights

The competitive landscape of the Latin America, Africa, UK, and Vietnam shallow water offshore supply vessel for oil & gas industry market is shaped by a mix of local manufacturers, regional giants, and international players. The players in the market are constantly innovating and expanding their offerings and presence. Despite the challenges, there are several factors that are driving growth in the Latin America, Africa, UK, and Vietnam shallow water offshore supply vessel for oil & gas industry market such as rising demand for oil & gas and increased investment in exploration projects across Latin America, Africa, the UK, and Vietnam. Leading producers in the region such as DSV, Bourbon, Choueset, Tidewater Inc., Sea1 Offshore, Vroon, OceanPact, SCALDIS, Allseas, Damen Shipyards Group, Hornbeck Offshore, DOF, SEACOR Marine, and others retain a substantial share in the market producing a wide range of offshore supply vessels including Anchor Handling Tug Supply Vessels, Platform Supply Vessels, and Subsea Support Vessels.

These companies focus on fleet versatility, operational safety, and technological enhancements to meet the growing demand for efficient and environmentally compliant vessels. They are increasingly investing in fuel-efficient engines, digital fleet management systems, and other innovations that streamline operations and reduce emissions. Companies also engage in various strategic initiatives, such as mergers and acquisitions, contracts, partnerships, joint ventures, and expansions, to enhance their market position and expand their reach. For instance, in June 2024, DOF Group successfully secured a series of contracts for pipeline support, subsea services, and anchor-handling vessels within the Atlantic basin, effectively ensuring the utilization of its fleet well into 2027. These contracts highlight the company’s strategic initiatives to expand its service offerings and solidify its presence in the offshore market. By providing critical support for pipeline operations and subsea projects, DOF reinforces its reputation for delivering reliable and efficient solutions in demanding environments.

The successful acquisition of these contracts not only strengthens the company's operational capabilities but also enhances its revenue stream, allowing for sustained growth and stability in a competitive landscape. Additionally, in March 2024, Siem Offshore do Brasil, a subsidiary of the Company, has secured new contracts with TotalEnergies EP Brasil for two of its platform supply vessels (PSVs): the Siem Giant and the Siem Atlas. The Siem Giant has been awarded a firm contract lasting three years, with the possibility of extending for an additional up to four years. Meanwhile, the Siem Atlas has been contracted for a firm duration of nine months, with options to extend the agreement until the end of the second quarter of 2027. This development highlights Siem Offshore's ongoing collaboration with TotalEnergies and reinforces its position in the Brazilian offshore market.

Furthermore, in April 2024, SEACOR Marine successfully completed the installation of a hybrid battery power system on one of its platform supply vessels (PSVs), marking a significant advancement in its fleet's capabilities. With this installation, the company is set to have over 50% of its PSV fleet powered by hybrid technology, which is expected to substantially reduce fuel consumption and lower engine hours. This move aligns with SEACOR Marine's commitment to optimizing hybrid battery technology, aiming to minimize environmental impact while maintaining operational effectiveness. Thus, all these initiatives are helping the companies to strengthen their position in the market.

DNV.: DNV (Det Norske Veritas) is a prominent international leader in risk management and quality assurance based in Norway. With a strong commitment to protecting life, property, and the environment, DNV supports a variety of industries, including maritime, oil and gas, renewable energy, healthcare, and food safety, by offering specialized services such as certification, digital assurance, verification, and advisory solutions. In the maritime sector, the company provides a range of offshore supply vessels, including platform supply vessels.

Additionally, DNV places a significant emphasis on research and development, utilizing more than a century of expertise to excel in areas like environmental management, cybersecurity, and the transition to renewable energy. By assisting organizations in navigating critical challenges such as climate change, digital transformation, and sustainable growth, DNV plays a vital role in advancing risk mitigation and promoting industry’s best practices, ultimately benefiting both its clients and society as a whole. With operations in over 100 countries including UK, Latin America, and Vietnam DNV effectively combines local insights with global standards to deliver dependable and impactful services.

Bourbon: Bourbon Offshore is a prominent provider of marine and subsea services, primarily catering to the oil and gas industry. With a strong presence in approximately 38 countries, Bourbon Offshore has established itself as a market leader in offshore marine services. The company offers a comprehensive and modular range of solutions, including offshore support services, floating production units, and specialized vessels designed to meet the demanding needs of energy operators.

Bourbon Offshore is committed to delivering high-quality services that enhance operational efficiency and safety in offshore environments. Its fleet includes a variety of vessels equipped for both surface and subsea operations, enabling the company to support a wide array of projects in the energy sector. The company emphasizes innovation and sustainability, continuously adapting its services to align with industry advancements and environmental standards. By leveraging its extensive experience and expertise, Bourbon Offshore aims to foster long-term partnerships with its clients, ensuring that they can navigate the complexities of offshore operations effectively.

Key Companies in the Shallow OSV Market for Oil & Gas Industry Market includes:

• DSV


• Bourbon


• Choueset


• Tidewater Inc.


• Sea1 Offshore


• Vroon


• OceanPact


• SCALDIS


• Allseas


• Damen Shipyards Group


• Hornbeck Offshore


• DOF


• SEACOR Marine

Shallow OSV Market for Oil & Gas Industry Market Segmentation

Shallow OSV Market for Oil & Gas Industry Vessel Type Outlook

• Heavy Lift Vessels (HLVs)


• Anchor Handling Tug Supply Vessels (AHTS)


• Platform Supply Vessels (PSVs)


• Multipurpose Support Vessels (MSVs)


• Dive Support Vessels (DSVs)


• Construction Support Vessels (CSV)


• Subsea Support Vessels (SSVs)


• Others

Shallow OSV Market for Oil & Gas Industry Application Outlook

• Exploration & Production (E&P) Activities


• Offshore Rig Moves


• Subsea Services


• Pipe & Cable Laying


• Others

Shallow OSV Market for Oil & Gas Industry Regional Outlook

• Latin America


• Africa


• UK


• Vietnam

Report Attribute/Metric	Details
Market Size 2023	USD 10655.04 million
Market Size 2024	USD 11741.85 million
Market Size 2032	USD 21133.08 million
Compound Annual Growth Rate (CAGR)	7.6% (2024-2032)
Base Year	2023
Forecast Period	2024-2032
Historical Data	2018 to 2022
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Vessel Type, Application and Region
Geographies Covered	Latin America, Africa, UK, and Vietnam
Countries Covered	Brazil, Colombia, Guatemala, Mexico, Caribbean, Rest of Latin America, Cameroon, Congo, DRC, Gabon, Tunisia, Rest of Africa, UK, and Vietnam
Key Companies Profiled	DSV, Bourbon, Choueset, Tidewater Inc., Sea1 Offshore, Vroon, OceanPact, SCALDIS, Allseas, Damen Shipyards Group, Hornbeck Offshore, DOF, SEACOR Marine
Key Market Opportunities	Growing adoption of lng-fueled vessels in the maritime industry Growing energy demand and transition to cleaner sources
Key Market Dynamics	Growing demand for oil & gas Increased investment in exploration projects across Latin America, Africa, The Uk, And Vietnam