Shipbuilding contracts: Tips and traps
1 December 2016
Despite the recent sharp decline in oil prices and the reduction in offshore equipment spend, the offshore oil and gas sector remains a key market for the shipbuilding industry. Market analysts have identified Australasia as a 'regional market bright spot'; predicting growth of 3% per annum in offshore equipment spend between 2016 and 2020. Australia's LNG projects are said to be a key driver for Australasia's positive market outlook.
Further, the Australian government has recently announced that it proposes investing 25% of its defence capital expenditure to 2025/2026 on maritime capabilities, with a focus on local manufacturing.
Given these emerging market opportunities, it is timely to highlight some key aspects of shipbuilding contracts.
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