Subsea tree unit awards slumped to 32 in the first quarter (Q1) of 2025, marking a 65% quarter-over-quarter decline, according to Westwood’s Global Subsea Tracker. The drop reflects ongoing macroeconomic challenges and inflation-driven delays in project approvals and contract awards.
TechnipFMC led the quarter’s activity, securing iEPCI awards for Shell’s Gat do Mato in Brazil and Equinor’s Johan Sverdrup Phase III in Norway.
Exxon to make final investment decision for Hammerhead development this year – Routledge | OilNOW
Guyana is set to play a critical role in the Q2 rebound, with ExxonMobil’s Hammerhead development among the top projects to watch, according to Westwood. Key contractors have already received limited notices to proceed for Hammerhead.
“Offshore Brazil, Guyana and Norway are expected to lead this demand surge,” Westwood said in its report.
Other anticipated awards in Q2 include Eni’s Coral Norte in Mozambique and Equinor’s Fram Sør and Heidrun expansion in Norway.
From 2025 to 2029, global demand for subsea tree units is projected at 1,400, averaging 280 units per year. CNOOC’s plans for Baodao 12-1 and future expansions at Lingshui and Liuhua could further boost demand toward the end of the forecast period.
The Hammerhead Development Project is ExxonMobil’s seventh offshore oil project within Guyana’s Stabroek Block. It is expected to produce approximately 150,000 barrels of oil per day once operational in 2029, subject to regulatory approvals. This will push Guyana’s total offshore production capacity beyond 1.4 million barrels per day.
Hess, a stakeholder in the Stabroek Block, has described Hammerhead crude as “heavier but still attractive.”
