Orders for subsea equipment expected to surge by 43 percent in 2004

Petroleum News

Global orders for subsea equipment in 2004 are expected to increase 43 percent from 2003 levels, another indication the deepwater sector is rebounding.

“We do believe we are in the early stages of a recovery-sustainable growth period for the next two or three years,” Paul Hillegeist, president of Quest Offshore, said Jan. 26. Quest publishes the Quarterly Global Subsea Market Outlook and Industry Survey.

Based on its latest survey, Quest is projecting 325 subsea production tree awards this year with an upside potential of 385. The largest growth area is being led by the strengthening demand for subsea equipment associated with major deepwater projects in West Africa, Quest said.

“Quest estimates point to a 150 percent surge in subsea tree orders this year offshore Africa compared to 2003,” the firm said, adding that another “buoyant” market for subsea tree awards in 2004 is Asia Pacific, where a 67 percent growth rate over the previous year is anticipated.

Of all orders for subsea trees projected for 2004, West Africa is expected to receive 56 percent, followed by the North Sea with 12 percent, Asia Pacific with 12 percent, the Gulf of Mexico with 11 percent, and 8 percent for Brazil and other offshore areas of South America.

Quest tabulated 226 booked orders for subsea production trees in 2003, in line with the firm’s previous estimate of 218 awards for the year. Projects generally require a six to 24 month delivery period.