Subsea 7 set to exit Singapore for KL

Rising costs of doing business in Lion Republic said to be behind decision to switch cities.

Subsea 7 is set to quit Singapore and relocate its regional headquarters to Malaysia in the face of rising costs and the poor offshore market.

The move to Kuala Lumpur is due to be completed by late 2016, according to reports in Singapore’s The Business Times.

The Oslo-listed offshore vessel operator is said to be making about two-thirds of its 90-strong team in Singapore redundant as part of the move.

Several industry experts quoted by the business daily pointed to Singapore’s increasing costs as the main driver behind the decision.

Late last year Singapore’s Maritime and Port Authority (MPA) looked to help the hard-pressed offshore sector by extending port due concessions for OSV operators.

The new measures, which kicked in on 1 November 2015, are due to last for twelve months.

The Singapore Shipping Association (SSA) said it has been in talks with the MPA about lower charges for OSV operators looking to idle vessels.

The Business Times said Subsea 7 was just the latest offshore company to relocate to the Malaysian capital.

It also reported that offshore contractors such as US-listed McDermott, France's Technip and Italy's Saipem have made similar moves.