Continued idling of assets should the conflict persist would see wider MODU market tightening as drillers and NOCs manage capacity.The impact of the war in the Middle…
Continued idling of assets should the conflict persist would see wider MODU market tightening as drillers and NOCs manage capacity.
The impact of the war in the Middle East on the offshore energy sector has so far received less attention than the attacks on ships and oil storage and loading facilities. Nonetheless, the violence has already directly impacted MODU owners with at least one operator announcing it had evacuated workers from four drilling rigs in the Middle East but confirming the rigs were still under contract and insured.
In its Q1 2026 MODU Market Report, MSI has constructed three scenarios to put the potential impact into context for OSV and MODU owners.
- Quick resolution (<1 month)
Limited impact on OSV and MODU owners, the North Field being under force majeure would have seen OSV and MODU activity in Qatar reduced to a minimal role thus reducing utilization. However, the duration of the impact would have been brief enough to allow for a quick recovery, crews would be reduced to skeleton crews to allow essential work to be carried out but contract cancellations would not be expected. OSV owners may be requested to accept standby rates as operators look to cut costs.
- Mid-term conflict
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