A new report by energy research and consulting service, Douglas-Westwood (DW), forecasts global subsea hardware & vessel operations expenditure to total $134 billion over 2017-2021 period.
According to the report Subsea hardware will account for 62%, whilst subsea vessel operations will account for 38% of total expenditure.
Line pipe and subsea production systems should remain the principal drivers of expenditure, whilst subsea IMR vessel related activity will account for 15% of global expenditure at a 6% growth compared to the 2012-2016 period.
As production in shallow water basins continues to decline, the development of remote and marginal fields will act as fundamental drivers for subsea hardware and vessel operations expenditure, the report states.
Brazil, South East Asia, USA and West Africa will account for 44% of global expenditure between 2017 and 2021 much of this will be based on the volume of well stocks, large installed base of infrastructure, mega-projects sanctioned before the oil price collapse and greenfield projects that have been re-engineered and are expected to reach FID in the near-term.
Outside of these areas a number of new frontiers should see expenditure, including the development of East African gas basins and the fast track development of new discoveries such as Liza and Zohr reserves.