Offshore sector

After years of growth, the Oil, Gas & Offshore (Renewable) sector continues to face a major downturn. Falling global oil prices and derived gas prices have led oil investors and NOCs to significantly decrease investment in the exploration and development of wells. Rig counts are still down and this is expected to be the new status quo for the next few years. Even though demand is expected to exceed supply in the nearer future, it will be met by onshore US shale oil before new offshore developments become profitable again.

As a result, margins have decreased significantly, consolidation is taking place and cost cutting and efficiency programs have been rolled out. In the meantime, OPEC is committed to decreasing supply in an attempt to ‘stut’ the oil price, although this is only a temporary measure. Due to efficiency programmes, onshore shale oil projects are breaking even at a significantly lower level to bring supply on and take it off again, making onshore shale oil the swing factor in balancing demand and supply globally.

In the meantime, the sector is retaining its talent. so it is ready to hit the ground running when investments increase again.

Offshore companies are now looking for new markets. North Sea decommissioning is an opportunity. Between 2020 and 2025, the majority of North Sea assets will be retired. Decommissioning is becoming the new buzz word, as is offshore wind. Is the sector becoming greener and less reliant on oil and gas? Global macro-economics, energy demand and the supply balance, as well as the public opinion, are all important factors. But only time will tell. If sustainability gains momentum faster than the oil price returns to $80 a barrel or oil equivalent, we might all be caught by surprise. Are you ready for different scenarios?

Offshore Diensten
Onze experts helpen u graag

Our experts can be of service to you

Thanks to our knowledge and expertise in the industry, we can offer you services such as:

  • Strategise the future
  • Model your workforce to forecast the function people will hold in the near future, based on multiple scenarios, so you can compare what you need and want
  • Help you to optimise your offshore crew via tooling, so you can manage expat taxes
  • We can model your workforce using country-by-country reporting, so you can optimise in one go or comply with cbcr on a standalone basis
  • Assist you in managing your offshore risks in light of SHE assessments and cyber security
  • Help you to optimise your working capital, so you can hold on to cash as long as possible and get your cash as quickly as possible
  • Model different scenarios to forecast your cash flows
  • Provide business recovery services, if your cash and liquidity is too low to meet lender obligations and covenants due to current market conditions. We can help you to recover from and overcome this cycle downturn
  • Perform due diligence (buy and sell side) if you want to acquire, sell to or merge with a rival firm
  • Hard core accounting: IFRS 15, 16 and 9 affect your whole business model. For IFRS 16, we can help you to assess where you are exposed (we have a tool developed to quickly scan all your contracts), help you select a tool to identify leases, assist you to implement the tool and controls to effectively gather global information
  • With all our expertise and knowledge in servicing Oil, Gas & Offshore (Renewable) companies, as well as our understanding and practical know-how, wouldn’t it be great to have PwC auditing your financial statements and sustainability reports. 

Contact us

Esther van der Vleuten

Assurance partner, PwC Netherlands

Tel: +31 (0) 88 792 36 55

Xuan Le

Partner People & Organisation/ Tax partner, PwC Netherlands

Tel: +31 (0)88 792 34 69

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