Quest Analysts: 12.1% Annual Growth Rate
A recent report into global subsea tree awards, published by Quest Offshore, forecasts 12.1% compound annual growth rate (CAGR) over the next five years. This compares with a CAGR of 3.6% experienced in the previous five year period. Quest analysts state that growth prospects are sound for meaningful subsea orders during 2009/10, buoyed by notable projects offshore Brazil and Africa.
The report also acknowledges that awards maybe tempered in 2009 by the potential slow-down of final investment decisions (FID) on certain world class projects. This as oil companies actively look, and possibly wait, for cost reductions and concessions from all aspects of the global supply chain. West Africa is identified as a bright spot for future subsea activity, following on from ongoing projects by the major operators in the region.
These projects face slight delays, as is the norm for most large West African developments: Total's Clov project off Angola is moving back and forth from a late 2009 award to a potential early 2010 award and ExxonMobil is actively working to bring the dual-phase Kizomba Satellite project through to execution.
Similarly, Quest Offshore present a continuing bullish forecast for Asia Pacific over the next few years with Australia leading the demand. Large gas projects by the industry's major players, as well as smaller operators, dominate the region.
