Subsea Vessel Market Poised For Increase in Demand
The subsea vessel operations market is poised to see an increase in demand in the near term with day rates for some vessels set to increase. Between 2013 and 2017, Douglas-Westwood (DW) forecast $106 billion (bn) of expenditure on subsea vessel operations – an increase of 54% over the preceding five-year period. Global demand is expected to increase 23% compared to the previous five years. The rate of increase in expenditure is expected to be higher than the growth in vessel days, due to the move towards higher specification vessels to cater for deeper and more complicated field development programmes.
Whilst IRM-related days will continue to account for the majority of the market, field development related activity will see an even faster growth rate at a CAGR of 10.7%. This rapid pace will be primarily driven by increased development of deepwater reserves, with Brazilian and African field development work to account for about half of projected global demand.
These are findings detailed in DW’s new World Subsea Vessel Operations Market Forecast 2013-2017 which analyses the main factors driving demand for MSV, DSV, Flexlay, LWIV and Pipelay Vessels.
Report author, Calvin Ling, commented, “As operators look to increase the efficiency and profitability of their subsea developments, new technologies and processes are shaping the subsea vessel industry. Most notably the increased requirement for high voltage cables to power remote production platforms and complex subsea processing equipment will place a strong onus on flex-lay capable vessels and widen the role of electrical engineering firms in subsea field developments.”
Thom Payne, DW Manger in Singapore, concludes, “Subsea development will continue to account for an increasing share of global offshore activity. With the move to deeper waters, the requirement for vessels for a longer duration on site and with higher specifications are increasing, giving rise to higher expenditure prospects. Opportunity will also arise from the major pre-salt developments offshore Brazil and potentially West Africa, the prospects in the eastern Mediterranean and eventually the ultimate subsea challenge – the Arctic.”