Deepwater capex to reach $20 billion by 2010

Offshore staff

(West Africa) - The deepwater sector is forecast to continue its growth trend and will remain strong over the next five years, reaching an annual total of over $20 billion by 2010.

These are the headline findings of the new World Deepwater Market Forecast, from offshore analysts Douglas-Westwood, launched by Managing Director John Westwood at PennWell's Deep Offshore Technology (DOT) International Conference & Exhibition now taking place in Vitoria, Brazil.

"Between now and 2010, expenditure in the deepwater sector is projected to expand at a compound annual growth rate (CAGR) of 7.3%, with particularly strong growth coming from the Asia and Latin America regions," comments Steve Robertson, oil & gas research manager at Douglas-Westwood and lead author of the new study.

"The 'Golden Triangle' of deepwater, namely the Africa, GoM and Brazilian areas, will still account for 85% of global deepwater expenditure over the forecast period, but the rapid emergence of Asia as a significant deepwater region should not be overlooked.

"After the drilling and completion of subsea wells, an activity that is becoming increasingly expensive in areas such as the GoM, it is floating platforms that form the main component of deepwater development expenditure. Advances in technology, particularly in mooring systems and innovative hull designs, are allowing production from greater water depths to be viable on both a technical and economic basis. "

11/10/05