INDUSTRY REPORT

                                                                             
                      

MARINE AND OFFSHORE ENGINEERING

marine-offshore-engineering

INDUSTRY BACKGROUND

LEADING THE GLOBAL MARINE AND OFFSHORE ENGINEERING MARKET

It may be in the North Sea, the Gulf of Mexico or in the Middle East – but there's a good probability that a jack-up rig extracting oil and gas offshore was designed or made by a Singapore-based company. Singapore is the top player in the global market for oil and gas drilling units and offshore support vessels. From their humble beginnings as regional ship repair centres, our local conglomerates Keppel and SembCorp have become renowned names in the global industry.

Today, Singapore is the largest manufacturer of jack-up rigs, and commands 70 per cent of the world market. It also has 70 per cent of the global market for the conversion of Floating Production Storage Offloading units.

The future of the industry remains bright, driven by a global increase in energy demand. In particular, emerging markets such as China and India as key energy drivers are estimated to account for more than half of the global incremental energy demand from 2010 to 2040.

To meet future demand for energy, offshore deepwater along with unconventional oil & gas exploration and production activities will increase, to address the shortfall in conventional onshore oil & gas resources worldwide. More sophisticated products and technologies will be required to enable this new play in oil & gas exploration. For example, drilling rigs operating in the North Sea need to be designed for harsh environment and need to meet stringent specifications. These trends present exciting opportunities for Singapore’s marine & offshore sector.

A CLUSTER OF MARINE-RELATED EXPERTISE

The marine and offshore industry is on a roll, buoyed by high oil and gas prices and an ageing offshore fleet. Singapore has been a big beneficiary of the boom, having carved a reputation for consistent high quality and timely delivery. An expert cluster of marine-related service companies such as those providing classification services, maritime law and insurance services, and offshore support services has developed here. The industry also reaps significant gains from the country's robust and dynamic supply chain and precision engineering infrastructure. In 2011, total output from the marine and offshore industry grew to S$12.9 billion.

MAINTAINING ITS LEADERSHIP IN A SEA OF OPPORTUNITIES

To take the Singapore marine & offshore industry to a new level, we are building upon our strength in production and engineering to develop knowledge and innovation capabilities. Singapore continues investing in R&D to address the challenges of offshore oil & gas exploration & production.

For example, EDB, together with the Maritime and Port Authority of Singapore and the Agency for Science, Technology and Research have established the Singapore Maritime Institute to co-ordinate R&D across the various research centres and institutions of higher learning in this sector and to promote collaboration with industry. Focus areas include naval architecture, marine engineering and offshore and subsea systems.

MULTIPLE R&D LINKS BETWEEN ACADEMIA AND INDUSTRY

Technology is a key driver for the marine engineering sector. To stay at the leading edge of the industry, Singapore actively promotes R&D collaboration between its educational institutions and the private sector. Key initiatives include the Centre for Offshore Research & Engineering and Centre of Innovation – Marine & Offshore Technology. Additionally, both the Marine Centre of Innovation @ Singapore Polytechnic and Maritime Research Centre @ NTU work closely with local yards, such as Keppel, SembCorp, and ST Marine, to develop new capabilities.

CULTIVATING AND MOTIVATING MARINE MANPOWER

Well-trained manpower is a key ingredient for the growth of the technology-heavy marine engineering sector. With its marine industry stretching back to 1963, Singapore has built up a pool of skilled and experienced marine professionals. Meanwhile, its tertiary institutes have stepped up efforts to groom manpower for the sector. The National University of Singapore and the Nanyang Technological University have final-year specialisations and Master's degree courses in Marine & Offshore Engineering. EDB is also working with the universities to introduce Subsea Engineering and Naval Architecture and Marine Engineering studies at the postgraduate level. In addition, Ngee Ann Polytechnic and Singapore Polytechnic are working with University of Newcastle Upon Tyne, to roll out a full-fledged Bachelor's degree in naval architecture and marine/ocean engineering.

EXCELLENT LOGISTICS INFRASTRUCTURE

Singapore's reputation for reliability and speed in delivery is made possible by its world-class logistics infrastructure. The country's world-class sea ports and air freight facilities, superior warehousing and delivery channels, and unparalleled connectivity regionally and globally make it an optimal base for global sourcing and complex manufacturing. Efficient supply chain management is especially critical for rig building, where the equipment can come from various parts of the world, including Japan, the US and Europe.


FACTS AND FIGURES

  • Singapore has 70 per cent of the world market for jack-up rigs and 70 per cent of the global market for the conversion of Floating Production Storage Offloading units.
  • In 2011, Singapore’s marine & offshore industry’s total output grew to S$12.9 billion and its value-added was some S$4.5 billion.
  • The marine and offshore industry employed almost 75,000 workers in 2011.


  KEY FACTS

1. Leading the Global Marine and Offshore Engineering Market as the largest manufacturer of jack-up rigs and accounts for 70% of the  
    global market for the conversion of Floating Production Storage Offloading units.
2. A cluster of marine-related expertise.
3. Maintaining its leadership as the marine and offshore hub of choice through world-class shipyards and comprehensive marine-related 
    services.
4. Intensive R&D and facilities in academics and industry
5. Promoting well-trained marine manpower
6. Excellent logistics infrastructure



  OPPORTUNITIES

    • Ship communication system
    • Ship emergency reponse services
    • Marine equipment company
    • Marine electronics
    • Marine propulsion systems
    • Marine-related service company
    • Marine vessel design and engineering
    • Rig building
    • Ship navigation
    • Ship repair & conversion
    • Oil drilling company
    • Offshore company
    • Shipyard company


FIDE CONSULTANT GROUP
8 Eu Tong Sen Street
#13-82 The Central
Singapore 059818
T.  +65 6635 1055
E.  enquiry@fideconsultantgroup.com
W. www.fideconsultantgroup.com                                                                                                                                               

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