South American neighbours Guyana and Brazil are the driving force behind 30% of global subsea tree installations all the way up to 2030, according to Rystad Energy projections.
The Norway-based firmt said investments in offshore services are expected to balloon to US$300 million by 2027, with South America leading the charge alongside the Middle East and the North Sea.
Data compiled by Westwood Energy for its monthly Global Subsea Tree Tracker noted that at the end of May 2023, subsea tree unit awards recorded year-to-date closed at 155 units – a 29% year-on-year increase.
Major awards announced in May include an integrated engineering, procurement, construction, and installation (iEPCI) for TechnipFMC for Equinor’s BM-C-33 project offshore Brazil and Shell’s Dover field in the US GoM. OneSubsea was also awarded an integrated contract with a Subsea 7 and Saipem consortium to develop TPOA’s Sakarya Phase II gas field in the Black Sea offshore Turkey.
Key subsea tree contract awards to watch for the remainder of 2Q 2023 include Woodside Energy’s Trion project (Mexico).
Guyana, Brazil & West Africa pushing billion-dollar subsea opportunities for TechnipFMC | OilNOW
Like Rystad Energy, Westwood noted that ExxonMobil is expected to lead E&P’s subsea tree demand over the forecast period ahead of Petrobras, driven by its field development plans offshore Guyana and Nigeria.
Exxon’s latest award in Guyana was for the Uaru project. The contract covers the supply of 44 subsea trees, 12 manifolds, and associated equipment. This is the fifth award that TechnipFMC has received within the Stabroek Block, and the first project by ExxonMobil to utilise the company’s Subsea 2.0™ system.
The system uses a configure-to-order model that allows for faster delivery times and is designed to streamline subsea operations. As part of the contract, TechnipFMC will provide project management, engineering, and manufacturing services to deliver the subsea production system for Uaru.
Westwood’s full-year 2023-2027 subsea tree demand outlook is forecast at approximately 1,400 units, a 3% increase compared to last month’s forecast. It said potential upside remains following the signing of a host government agreement (HGA) and a vital production sharing agreement by Shell and Equinor, creating a pathway for the development of gas reserves in Blocks 1, 2 and 4 offshore Tanzania to feed the proposed 10 to 15 million metric tonnes per annum (mtpa) Tanzania LNG project.
