Subsea Oil and Gas Sector Set For 14.8% CAGR Growth To 2017

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Newsletter on 25/02/2013

Subsea Oil and Gas Sector Set For 14.8% CAGR Growth To 2017

According to Infield Systems’ latest research, the outlook for the Subsea industry is amongst the most promising in the offshore oil and gas world, with Subsea Capital Expenditure (Capex) set to grow at a staggering 14.8% CAGR to 2017. In recent years, offshore market conditions have forced operators to push their E&P efforts to deeper, more remote and harsher locations in order to tackle declining production. In addition, the advancement of subsea technology, coupled with improved manufacturing techniques has lowered the cost associated with developing certain types of fields, enabling a number of smaller, previously uneconomical fields to be tied-back into existing infrastructure.

2012 proved to be an encouraging year for the global subsea industry. For the first time since 2008, Infield Systems recorded 416 new subsea tree orders, compared with just 321 orders in 2011, and more than 320 trees were brought on-stream – 60 more than in the prior year.

This positive trend looks set to continue into 2013, with Infield Systems forecasting over 500 new subsea tree orders and up to 370 subsea tree installations, mainly driven by investments in the ‘Atlantic Triangle’; West Africa, Brazil and the US GoM. Among the most anticipated awards are: Total’s Egina, with an order for over 35 trees and Chevron’s award for Block 14, which could potentially add a further 21. BP’s PAJ development is expected to announce its award during the second half of 2013, adding up to 30 tree orders to the market. In Brazil, Petrobras is moving towards making an award for the first tranche of subsea infrastructure for its Libra and Carioca fields, as well as the second tranche for its Franco development.

In total, operators are expected to invest more than US$19 billion in Capex for subsea production equipment during 2013, a figure that is likely to grow to US$33.3 billion by 2017.
See Infield Systems at Subsea Tie Backs Forum & Exhibition, San Antonio 5-7 March 2013, San Antonio, Stand 452 

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Contact Information:

For more information please contact:

Quentin Whitfield
Infield Systems Limited
Suite 502, 1 Alie Street
London E1 8DE
T: +44 20 7423 5000

About Infield Systems:

Infield Systems is an independent energy research and analysis firm that provides accurate and up-to-date data, market reports, mapping and forecasts for the offshore oil and gas and associated marine industries. In addition, Infield Systems provides market intelligence analysis, business strategy services, commercial due diligence and M&A transaction advice.

About Infield Systems’ Market Forecast

Infield Systems marketing modelling and forecasting system – OFFPEX is a highly-evolved contextual development of the Offshore Energy Database and Infield Systems' other proprietary databases detailing specialist vessels, drilling rigs, supply chain contracts and construction and fabrication yards capabilities and their capacities. Other inputs into OFFPEX include financial, company, technical, contractual, subsea construction capabilities, capacities of subsea tree supply, along with other business related information and a series of market drivers and variables.

With tens of thousands of data inputs including all the major energy related public domain sources, OFFPEX is both a repository of information and a forecast tool from which expenditure models, alternative development scenarios, long-term trend analysis, supply & demand assessments, field parameter trends and other business tools can be derived.

The OFFPEX forecast is published quarterly and each edition is directly comparable to the previous one. The strength of OFFPEX lies in the ability to section, cross-compare and interrogate the derived short, medium and long-term forecasts and models back down to individual project elements - the bottom-up approach. The modelling process is dynamic and the processes by which the outputs are achieved are transparent. This allows OFFPEX to be responsive to shifts in key industry drivers and events - changes and improvements to both inputs and processes are constantly being applied. 


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