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Westwood releases latest annual subsea vessel report

Published by
World Pipelines,

Westwood’s World Subsea Vessel Operations & Hardware Market Forecast analyses the factors influencing the global subsea market, with detailed insight on both the subsea hardware and vessel operations demand and supply trends. Hardware expenditure, vessel-day demand and expenditure are analysed, with commentary on segmented regional outputs.

Westwood is forecasting subsea vessel operations and hardware expenditure to total US$141.1 billion over the 2018 - 2022 period. Following three weak years of order activity, the industry appears to be past the bottom of the cycle and has seen a 108% increase in greenfield project sanctioning offshore compared with 2016. This is supported by positive macro drivers in the near and long-term, albeit the recovery remains fragile and dependent on OPEC discipline.

Key conclusions

  • Over the forecast period, 62% of expenditure will be focused on subsea hardware, with subsea vessels operations accounting for the remaining 38% of forecast expenditure.
  • Subsea tree installation is forecast to grow at a 3% CAGR over the 2018 - 2022 period, driven by an expected increase in the number of projects passing FID over the next 18 months.
  • The pipeline and pipelay sectors will account for 28% of total expenditure over the forecast.
  • Westwood anticipates a significant volume of IMR activity to return to the market, with vessel-related IMR activity spend expected to total US$19.8 billion over the forecast, increasing at a 5% CAGR over 2018 - 2022.
  • Total forecast vessel operations expenditure over 2018 - 2022 is expected to decline by 4% relative to the 2013 - 2017 period, while vessel day demand will increase by 7%, a function of supressed vessel day rates since 2014 levels.
  • Overall, Westwood expects to see a gradual market recovery over the next five years, with an increase in FEED and tendering activities. However, a competitive pricing structure is expected to remain in the near-term, which will limit Capex growth.

      Image: Global Subsea Vessel Operations & Hardware Expenditure and Vessel Day Demand 2013 – 2022.

      Click here to access the latest Subsea Vessels Operations & Hardware databook or to arrange a review call with the analyst team.

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