Interview with Offshore Expert Justin Hoffman
Justin Hoffman, Vice President and Business Developer for the offshore sector at ALMACO Group, sees signs of recuperation and new business opportunities in the offshore industry.
1. What has happened in the offshore industry during the past year?
With growing confidence in the market, supported by more favourable oil price consistency, we have seen FID of almost double the FPSO projects in 2019 compared to 2018. 2020 has seen continued project awards and the increased utilization of standardized hull designs to expedite project completion.
2. What can we expect to happen in the offshore industry in the upcoming years?
In the downturn, there hasn’t been a lack of need for more offshore assets, it’s just not been economically viable. But as we enter 2020 there are 25 FPSO’s currently on order, with 42 at early conceptual stage and expected to be approved. Of course, with increased activity after a prolonged downturn, the risk of cost escalation and extended delivery times has returned with companies trying to secure yard production space ahead of project award.
3. How is ALMACO preparing for the upcoming years?
With the continued move towards standardization of design in order to expedite production completion and thereby time to first oil, ALMACO’s prefabricated cabin technology and mobile cabin factory fits very well into this model. Moreover, ALMACO is able to offer better control and improvements in quality, HSE, logistics and scheduling, compared to the traditional execution model.
4. What industry trends do you see in the Offshore market?
There is an industry trend to get away from an “industrial” living quarter in order to improve work/life balance for offshore workers, fueled by the desire to keep and attract experienced personnel. This trend is also driven by a consideration for the expectations from the next generation of offshore workers, which ALMACO propose doesn’t have to come at a cost imperative.