Factor influence on purchasing new vessel by the offshore shipping company

Abstract

There are many factors and criteria that had been used by the offshore shipping companies on selecting and purchasing the ship to run their activities. Despite a growing body of research on purchasing practices in Malaysian offshore shipping company, a number of key issues remain under-examined. We surveyed a detail of related factors in Malaysian offshore shipping companies' purchasing activities in term of the rise of oil market price, rising of offshore exploration and production activity, and the increasing number of offshore installation. Through the survey of four Malaysian offshore shipping companies, number of purchasing offshore support vessel will be increased due to the high oil prices to balance supply and demand of oil resources. In terms of the active offshore exploration and production activities, OSV's charterer have involve in making decision regarding the age, type and technical characteristics in order to meet the changes in oil and gas exploration and production activities. Increasing of offshore installation is simultaneously affected by the increasing of OSVs in Malaysia by the certain types of the vessels. The implications of these findings are discussed and areas for future research are proposed.