HS Code:
The Offshore Oil and Natural Gas Drilling and Production Platforms category (HS Code: 890520) includes floating or submersible drilling or production platforms used in the exploration and extraction of oil and natural gas from offshore locations. These platforms are critical infrastructure for the energy sector, designed to withstand harsh marine environments and equipped with advanced technology for drilling, extraction, and sometimes processing of hydrocarbons. This category encompasses a range of structures, including fixed platforms, floating production storage and offloading units (FPSOs), and semi-submersible rigs. Trade in this category involves high-value, specialized equipment often produced by a limited number of countries with advanced shipbuilding and engineering capabilities.
Total Trade Volume
USD 15.3 billion
Data from 2022
Source
UN Comtrade Database, International Trade Centre (ITC)
Average Rate
4.5%
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like NAFTA/USMCA and EU-Singapore FTA)
Shift towards renewable energy impacting long-term demand
Investment in offshore oil and gas platforms is slowing as countries pivot to wind and solar energy, reducing new orders for drilling rigs in favor of offshore wind platforms.
2021-2023
Technological advancements in automation and digitalization
Increased adoption of automated and remotely operated platforms is driving demand for high-tech rigs, benefiting countries with advanced manufacturing like South Korea and Singapore.
2020-2022
Rising demand in deepwater exploration
Growing interest in untapped deepwater reserves, particularly in regions like West Africa and South America, is sustaining demand for specialized floating platforms.
2019-2023
A leading South Korean shipbuilder won a USD 2 billion contract to build an FPSO for a Brazilian offshore project, reinforcing South Korea's dominance in this sector.
March 2023
Boosts South Korea's export figures and solidifies its position as the global leader in offshore platform construction.
The European Union introduced stricter environmental standards for offshore drilling equipment, requiring platforms to reduce carbon emissions during operations.
January 2023
Increases production costs for manufacturers but creates opportunities for innovation in green technology for offshore platforms.
Ongoing trade disputes have led to delays in the supply of critical components for offshore platforms, impacting project timelines in the Asia-Pacific region.
September 2022
Raises costs and delays delivery of platforms, potentially shifting some production to alternative suppliers in Singapore or Europe.