Contract suspensions and insurance spikes pressure Gulf offshore market

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The Persian Gulf offshore market faces pressure from contract suspensions, rising insurance costs, and risks to EPC projects amid ongoing regional conflict tensions. British consultancy MSI reports slow recovery prospects to pre-conflict activity levels.

A combination of contract terminations, spiralling insurance costs and the threat to EPC projects is creating a complex combination of risk for offshore operators in the Persian Gulf. In its latest Horizon Monthly Offshore report, British consultancy MSI notes that whilst rig contract terminations have been few, a return to pre-conflict levels could take months …