For years, Singapore’s offshore and marine (O&M) companies have anchored their operations in oil rig services. But with volatile oil prices, a shift in focus has become essential. Today, three of Singapore’s listed O&M players are setting their sights on offshore wind farms as the next frontier.
Leading the charge is Sheffield Green, a provider of human resource solutions and training tailored to the offshore wind sector across markets in Taiwan, Japan and South Korea. In the wake of the 2014–2016 oil price downturn, CEO Bryan Kee spun off the firm in 2021 from the unlisted Sheffield Energy, which serves the oil sector.
Speaking at an Oct 16 panel, Kee says he observed that the skills required for offshore wind were similar to, and hence transferable from, traditional oil sector expertise.
He outlines the scale of the opportunity in offshore wind: “Poland intends to derive 23% of its energy from renewables by 2030, yet they have no offshore wind farms installed today. South Korea, with similar targets, has less than 1 gigawatt (GW) of offshore wind capacity. The potential for these countries is huge, and we already have a presence in both.”
Kee was joined on the panel by fellow industry executives Sean Lee, CEO of Marco Polo Marine 5LY ; and Paul Whiley, COO of Mermaid Maritime DU4 .
Kee accurately sensed the growing demand for skilled workers and technicians in wind energy. A 2024 report by the non-profit Global Wind Organisation (GWO) estimates that the sector will need approximately 600,000 personnel between 2023 and 2027.
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Kee also points to the offshore wind industry’s insulation from global economic uncertainty as a bonus, thanks to the backing of government subsidies in the various markets where Sheffield Green operates. “This is even more so for countries like the UK and other European nations committed to net-zero carbon targets. They’ll proceed with their plans, even amid current economic conditions.”
Investing in the future
While countries pursue ambitious targets in accordance with the Paris Agreement, Mermaid Maritime’s Whiley notes a more conservative stance within the O&M sector itself.
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“Everyone’s sort of under-promising so they can over-deliver in this green revolution,” he says. “Oil companies may aim for aggressive European targets by 2030, but they’ll struggle with power supply. Oil will be with us for another 30 to 40 years; it’s about cleaning oil up.”
Mermaid Maritime, traditionally rooted in oil rig inspection, repair and maintenance (IRM) and transportation and installation (T&I) work, is exploring a future in rig decommissioning and cable-laying projects, key areas in a post-oil landscape. “Cable installation is where we see growth,” says Whiley. “The methods are identical, whether for oil rigs or wind farms.”
He cites the company’s Millennium Three vessel as an example of dual-purpose adaptability. “Often, it’s powering actuators or laying cables to jackets in the oil rig space, but the same technique is used for wind farms. We see this vessel as essential to our future, especially as a shallow-water lay vessel.”
Marco Polo Marine, another prominent O&M player, has also started diversifying into offshore wind farms. Lee says the pivot is designed to mitigate the cyclical nature of oil, which was a hard-learned lesson during the 2020 downturn.
Lee expects the company to generate half its revenue from renewable energy activities. “In an offshore wind farm itself, you have the conceptualising stage, the engineering stage, then you have the commissioning of construction and finally, operation and maintenance. During the construction stage, you need anchor handlers, you need barges, crew transfer vessels, and right after construction, you need operation and maintenance — that is going to last another 25 years, so it’s a long game.”
Further advancing this strategy, Marco Polo has begun constructing a commissioning service operation vessel (CSOV) for offshore wind, named the Wind Archer. Slated for deployment across Taiwan, Japan and South Korea, this vessel is under construction in Marco Polo’s Batam dry dock in Indonesia. It has already secured a contract with Danish wind turbine manufacturer Vestas.
“[Wind Archer] will be delivered by year-end, with Taiwan as her first destination with Vestas,” Lee noted. “Global CSOV demand is outpacing supply; for instance, while 84 projects are under construction, up to around 150 CSOVs would be needed to service them effectively moving forward.”
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As the three O&M players embark into this new space, the executives ask investors to be patient with seeing returns. Whiley says: “You get to a point in business where you have to make a decision. So, I very much agree with my fellow panellists in terms of being patient. As long as there’s a future and it’s real and tangible with good clients, they can pay. And that’s that, it’ll pay off.”
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