Business Strategies and Risk Factors

The offshore pipeline construction service industry has seen varying degrees of consolidation and integration over the years. The demand for pipeline construction fluctuates from year to year and by geographic region. During periods of sustained low oil prices demand for services are reduced, causing contractors to resize operations to maintain a competitive position, to form alliances and partnerships in search of opportunities, and to stack and dismantle less competitive vessels to reduce cost. The purpose of this chapter is to describe the business models and strategies employed by offshore construction companies and their impact on operations. Operational and financial risk factors are highlighted, and the chapter concludes with company portraits.