Increasing worldwide levels of offshore oil, gas and renewables developments will hike charter rates and remove market slack
Upstream investment in floating production systems (FPS) and well tie-backs will drive demand for subsea construction and maintenance support vessels this decade.
There are sufficient vessels in the market at present, but availability and higher rates will become key challenges for energy companies.
Around 50 new FPS units are expected to be installed in the next four years, boosting global numbers to more than 550 and helping to drive subsea well installations to 270-320 per year, according to Maritime Strategies International (MSI). There will also be a substantial increase in pipeline installations, from around 3,000 km in 2022 to over 8,000 km in 2025.
“There will be an elevated period of subsea activity, based on installations,” said MSI offshore energy market analyst, Joshua Belo-Osagie. “We are bullish on the deepwater market, where there are more complex workscopes.”
FPS projects in Latin America, West Africa, northern Europe and Asia are driving market demand. “Western supermajors are focused on short-cycle gas developments and frontier areas in South America and West Africa,” said Mr Belo-Osagie, during Riviera Maritime Media’s Offshore Support Journal Conference, Exhibition & Awards 2023, held 8-9 February in London, UK.
“There will be an elevated period of subsea activity based on installations”
This upcoming demand hike comes as available subsea vessel supply has diminished. “It is a tightening subsea market, with shrinkage in the laid-up fleet and almost no newbuild deliveries since 2020,” said Mr Belo-Osagie.
Utilisation of the global fleet of 330 subsea support vessels was around 85% at the start of 2023. With no more vessels expected in the market, he questioned whether there are sufficient vessels available to meet the forecast demand growth.
Norwegian projects
Subsea projects in northern Europe will be dominated by the development of multiple fields, as tie-backs to FPS units and some new fixed platforms. Equinor contracted DeepOcean, Subsea7 and TechnipFMC to deliver and install subsea infrastructure for two new oil and gas fields in the Norwegian Sea. The Irpa field will be an 80-km tie-back to the Aasta Hansteen FPSO and the Verdande field will be tied into the Norne floating production storage and offloading (FPSO) ship.
For these projects, Subsea 7 and DeepOcean will be responsible for the engineering, transport and installation of pipelines, risers, flowlines umbilicals and subsea structures, while TechnipFMC will supply and install subsea trees, control systems, structures and connections.
Aker BP has contracted TechnipFMC for integrated engineering, procurement, construction, and installation of subsea production systems, controls, pipelines and umblicals for the development of tie-backs to the Ivar Aasen and Edvard Grieg production platforms in the North Sea.
Aker Solutions, Subsea 7 and alliance partners won contracts from Aker BP for the field development projects Yggdrasil (formerly NOAKA), Valhall PWP-Fenris and Skarv Satellites, which involve platform installation, subsea construction, facility modification and associated vessel support work from 2024 onwards.
Major subsea projects 2023-27
Latin America
Cypre, Buzios 7-12, Bacalhau, Mero, Starboek fields, Trion, Mexico Block 29
North America
Whale, Bay Du Nord, Puma West
West Africa
Agogo, Baleine, Cameia. Bonga North, GTA
Northern Europe
Rosebank, Cambo, KEG, Utsira High, Yggdrasil, Offshore Wind
Mediterranean
Anchois, Sakarya, Argo-Cassiopea, Interconnectors
Far East
Kelidang, Limbayong, Lingshui 18-1/25-2, Bohai Bay
Middle East
Safaniya, Marjan
(source: MSI)
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