This month Infield Systems Ltd. (ISL) looks at forecast global subsea market capex for the 2007-2011 period. The scope of the subsea market within this context includes control lines, pipelines (excluding conventional and trunk/export pipelines), single point moorings (SPM), and subsea completions (encompassing manifolds, pipeline-end manifold, satellite and templated wells, templates and subsea compression and seperation units).
The chart illustrates the regional split of the total global subsea capex forecast for the 2007-2011 period. Relative to the 2002-2006 period, total global subsea capex is expected to rise by 82%. Asia is most likely to account for the highest rate of increase followed by Africa, Latin America, Europe, and the Middle East and Caspian regions, respectively. At the moment, subsea capex in North America is expected to account for the lowest rate of rise in subsea capex, but if the development of the Lower Tertiary trend takes off, there could be a surge in expenditure towards the end of the period.
Across the 2002-2006 and 2007-2011 periods, subsea completion activities are predicted to witness the highest rate of increase in capex terms, followed by capex spend on SPM. Within the subsea completions subsector, the development capex related to satellite wells is expected to represent the highest growth rate (124%) and share of predicted capex. Capex on manifolds in the 2007-2011 period is expected to account for the next highest share of the total forecast.
Within the subsea pipelines sector, flexible and catenary riser related capex is predicted to account for the highest rate of increase (527%), while umbilicals account for this position within the control lines segment. A key trend in the global subsea market is the increasing concentration of activity in deep and ultra deepwaters.
-Ojus Palathingal, Research Analyst
-Dr. Roger Knight, Editor & Data Manager
