GLOBAL DATA

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This month Infield Systems provides a snapshot of the SURF (subsea umbilicals, flowlines, and risers) market in Latin America up to 2019, with particular focus on Brazil and Mexico, which are expected to be the region's main SURF markets. Brazil is expected to dominate Latin American SURF demand, fuelled by the country's large deep and ultra-deepwater reserves which require subsea production systems, of which SURF lines are a pivotal component. State-owned Petrobras is anticipated to continue to be the main demand driver in Brazil, with Infield Systems projecting the NOC to account for the largest share of SURF capex. Noteworthy projects expected to drive SURF demand in Brazil during the next five years include Petrobras' ultra-deepwater Lula Central, Iracema North, Lula Alto, and Buzios oil fields.

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Mexico could see a considerable increase in SURF capex over the next five years in comparison to the historic period (2010-2014), driven entirely by state-owned PEMEX. Although due to recent changes in legislation, demand could be supported by private companies. Despite the projected increase, Mexico's demand will be significantly smaller than Brazil, only accounting for a fraction of Brazil's projected SURF capex (7%). Increasing demand in Mexico stems from PEMEX's movement into deeper waters in order to help reduce the country's production decline. A noteworthy development expected to drive SURF investment in the country includes PEMEX's Lakach oil field. The field, which is situated in water depths of around 988 m (3,241 ft), could account for 42% of the country's SURF investments over the next five years. Saipem was awarded the EPIC contract for the development of the field, which involves connecting Lakach to an onshore gas conditioning plant. Aker Solutions was recently awarded a contract to provide electro-hydraulic steel umbilicals for the field development.

-George Griffiths, Senior Energy Researcher, Infield Systems

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