• 1 Executive summary

    The subsea market has faced a challenging period, with recent years characterised by increasing costs and delays, whilst the fall in global commodity prices has affected the economic viability of deep and ultra-deepwater developments; the mainstay of subsea capex demand.

  • 2 Global overview

    Latin America and the Caribbean will continue to lead the global subsea market over the forthcoming five years, driven by the development of Brazil’s deepwater pre-salt discoveries. However, the region’s dominance of the global market is to reduce.

  • 3 Current market dynamics

    With costs rising across the sector, operators are now looking to equipment providers to deliver more cost efficient solutions. This is undoubtedly a challenging task, with greater collaboration and standardisation at the heart of future efficiency savings within the sector.

  • 4 Regional analysis

    Development offshore Africa centres on the established deepwater Blocks offshore Angola and Nigeria where French IOC Total dominates development. Recent years has also seen Ghana emerge as a key country of capex demand.

  • 5 Operators

    Total has a geographically diverse portfolio and is the leading player in Africa, underpinned by world-class deepwater discoveries in Angola and Nigeria. Shell is expected to remain one of the key players within the market, driven by its focus on deepwater development.

  • 6 Manufacturers

    FMC Technologies leads the global market with a focus on deep and ultra-deepwater developments offshore Brazil and the GoM. The company set a world record for the deepest subsea tree installation on the Tobago field in 2011 at a depth of 2,934 metres.

  • 7 Assumptions

    In the long-term, price risks are weighted towards the upside. A longer-than expected oil price downturn will cause systematic damage of existing infrastructure and exploration activity, limiting the sector’s capacity to meet upside demand in the coming years

  • 8 Appendices

    Infield Systems’ analytical team has developed an advanced market modelling and forecasting system for the global offshore oil and gas industry utilising their wealth of experience of industry forecasting, research and data management. This is known as OFFPEX.