Shifting fundamentals and a maturing fleet are shaping offshore support vessel (OSV) dynamics in 2026 and beyond. Here, we outline key findings and what they mean for vessel owners, operators and offshore energy stakeholders.
Oil prices retreated from around US$80 to US$62/bbl through 2025 as global supply additions – notably from OPEC+, the US and Latin America – contributed over four mmbpd of incremental production and pushed the market into an average oversupply of 1.2 mmbpd.
Looking ahead, Q1 2026 could see the largest imbalance since the Covid‑19 downturn, before gradually moderating across the year. Geopolitical volatility, including the removal of Venezuela’s Nicolás Maduro and civil unrest in Iran, adds further uncertainty to OPEC’s supply outlook.
While oil price softness typically feeds into offshore activity with a lag, the OSV market enters 2026 with momentum supported by vessel scarcity, improving requirements, and multi‑year offshore investment cycles in key regions.
Offshore engineering, procurement, construction and installation (EPCI) expenditure totalled US$259bn between 2022 and 2025, easing to US$54bn in 2025 as project deferrals and macroeconomic caution slowed final investment decisions. However, the outlook brightens meaningfully in 2026, with spending projected to rise 32%, reaching US$71bn before stabilising at levels above 2025.
Key regions for growth are West Africa and Latin America. Notable projects include TotalEnergies’ Venus Phase I (Namibia) development with an estimated cost of US$3 billion for a newbuild FPSO, as well as ExxonMobil’s Longtail (Guyana) development. South Africa is also emerging as a frontier for large scale offshore oil developments.
These investment flows translate into long-term demand for platform supply vessels (PSVs), anchor handling tug supply vessels (AHTS), and tonnage capable of supporting complex installation and field development campaigns.
Rig activity softened marginally across jackups, semisubmersibles and drillships in 2025. Average committed jackups closed the year at around 397 units – a four per cent YOY decline – largely attributed to Saudi Aramco’s phased suspensions since April 2024.
Meanwhile, semisubs closed at around 62 committed units with a seven per cent YOY drop, and drillships averaged 81 committed units at the end of 2025, representing a one per cent YOY decline.
Despite these small declines, offshore rig day rates remained strong, with jackups averaging US$94,000/day, semisubs fixing at around US$375,000/day and drillships US$430,000/day.
This stability reflects a market that has rebalanced post Covid, with high-specification units in particular benefitting from tight availability. Offshore drilling trajectories continue to support OSV demand across logistics, anchor handling and rig move support.
Demand for the OSV fleet grew two per cent YOY in 2025, supported by robust activity in three key regions (with accompanying activity shares) – the Middle East (19 per cent of demand), Latin America (16 per cent), and Southeast Asia (14 per cent). Marketed utilisation averaged 76 per cent for the year, with total fleet utilisation at 71 per cent.
Westwood expects marketed utilisation to strengthen to 77% in 2026, then exceeding 79 per cent in 2027 as fleet availability tightens.
Fleet composition and reactivations
The global operational fleet expanded to 3,209 vessels in Q4 2025, while the laid‑up fleet fell slightly to 377 vessels. However, the age profile continues to shift – vessels over 15 years old now represent a larger share of the operational fleet than newer tonnage.
Regional movements highlight ongoing redistribution, with South Asia and West Africa receiving the highest influx of vessels during the quarter, while the North Sea had the highest outflow of 20 vessels.
Orderbook remains limited relative to active fleet
As of Q4 2025, the global OSV orderbook stands at 216 vessels, of which 57 per cent are for AHTSs and 43 per cent are for PSVs. Compared to the pace of offshore activity growth, the orderbook remains structurally low, supporting the multi‑year tightening theme that has characterised the post‑pandemic OSV recovery.
The aging fleet and limited newbuild appetite underscore a tightening supply outlook – particularly for modern, fuel‑efficient vessels aligned with charterer expectations.
Despite macroeconomic pressures and a softening oil price environment, the OSV market continues to tighten, driven by structural fleet constraints, strong regional pockets of demand and a wave of offshore EPCI investment returning in 2026.
With marketed utilisation set to rise again and the fleet aging faster than it renews, vessel availability is expected to remain a central challenge for charterers into 2027.
