Page 30: of Marine Technology Magazine (September 2012)

The new second edition of The World Subsea Vessel Operations Market Forecast 2012-2016 analyzes the main factors that are driving demand for ROVSV, DSV, Flexlay, LWIV and Pipelay Vessels and pro- vides supporting information analysing each key sector. The report builds on the success of the Þ rst edition to include a comprehensive supply-side competitive landscape with major players and their ß eets, segmented by vessel type, day-rate analysis and geographic focus. Market Summary DW forecast that approximately $77b will be spent on sub- sea vessel operations in Þ eld development, inspection, repair & maintenance (IRM) and subsea well intervention between 2012 and 2016,. This is an increase of 63% over the preceding Þ ve-year period. Global vessel demand for these markets is expected to increase 33% on the previous Þ ve-years. Global vessel expenditure grew from $8.7b in 2007 to over $10b in 2009 before dipping in 2010. During this period ves- sel contractors were largely insulated from the Þ nancial crisis that strongly impacted some other sectors and were able to work off their backlog. Subsea Vessel Operations The report considers three main areas of activity; Field De- velopment, IRM and Subsea Well Intervention. Subsea infrastructure and equipment is installed by vessels with specialist capabilities. Subsea wells and infrastructure require regular inspection, repair and maintenance (IRM) and intervention services to ensure production rates remain high. Subsea tasks and services often involve complex and chal- lenging engineering in difÞ cult conditions which is why the costs associated with subsea developments can be far higher than platform-based developments. Field Development: Tasks carried out by vessels which can lift and install offshore and subsea infrastructure for new de- velopments or connect additional subsea equipment to an ex- isting production facility. The Þ eld development market is expected to see strong growth from 2012 onwards with vessel day demand totalling an estimated 149,413 days with $4.2b of expenditure over the forecast period. The sector suffered a decrease in activity of 5% between 2008 and 2010, a drop in 2,586 vessel days, as operators stalled proj- ects due to the economic crisis. 2012 will mark the Þ rst year of growth after this period as conÞ dence returns to the market and operators drive delayed projects into the installation phase. Africa and Latin America will exhibit strong demand for Þ eld development and construction vessels and will become the most signiÞ cant regions, requiring approximately 10,000 and 7,000 vessel days respectively by 2016. The development of BrazilÕs pre-salt basins will be the dominant driver for this. Future demand will be driven by developments in deeper wa- ters. Oil majors have an urgent requirement to renew reserves to keep up with growing global demand for oil and gas and the largest prospects lie in deep water. Between 2012 and 2016 the number of vessel days associ- ated with deep water developments is set to more than double with an estimated 26,223 required by 2016.IRM: Tasks carried out on offshore infrastructure below the water line in order to maintain production and ensure suitable HSE standards are met. Total demand for IRM vessel activity grew by 19% between 2007 and 2011 and expenditure reached $4.5b in 2011 which represents nearly 27,929 vessel days. This continuing upward trend is being driven by the growing installed infrastructure base and is forecast to be worth $7.5b by 2016, a 53% growth on 2012.North America is the most dominant region for IRM activity due to the mature nature of the region and the sheer volume of infrastructure in place. Over the forecast period the region will require 25% of all IRM activity and have estimated expendi- ture of $7.5b. This is impacted by the Deepwater Horizon ac- cident, which has placed greater focus on regulators to ensure infrastructure is inspected at more frequent intervals. Subsea well intervention: is an umbrella term for a number of distinct tasks which are designed maintain structural integ- rity of wells or increase production. The use of intervention vessels will grow due to substantial cost savings over using rigs. From 2012 onwards the demand for riserless and rigless intervention vessels will increase dra- matically by 77% to 5,443 days by 2016.The vessel demand forecast over the period 2012-2016 is expected to total an estimated 23,046 days Ð an increase of Market Report Deep Water Developments and Increased Con dence Driving Growth in Subsea Vessel Operations By Joseph Corrigan30 MTRSeptember 2012MTR #7 (18-33).indd 30MTR #7 (18-33).indd 309/10/2012 9:31:49 AM9/10/2012 9:31:49 AM