Douglas-Westwood forecasts deepwater Capex to hit $223 billion between 2013 and 2017.
The company has found that the outlook for the deepwater business will be one of major long-term opportunities.
As deepwater projects become increasingly capital-intensive, there is an economic challenge for exploration & production companies but a significant potential prize for oilfield service and equipment vendors says a report published by the company.
“The ‘Golden Triangle’ of Latin America, the Gulf of Mexico and West Africa will dominate deepwater expenditure over the next five years, but African developments – largely concentrated in Angola, Ghana and Nigeria – and Brazilian projects dominate the forecast spend,” said Rachel Stonehouse, who wrote the report.
“Brazil is likely to experience substantial growth, exceeding Africa’s deepwater expenditure towards the end of the forecast period, with activity driven by Petrobras’s development of its pre-salt Campos and Santos fields.
“Despite the delays caused by nations’ local content requirements and geopolitical disputes, significant investment will occur in the Golden Triangle, whilst some regions with historically small deepwater activity will experience astounding growth over the next five years. However, continuing technological advances and increased cost-efficiency will be required to ensure the viability of future prospects in both existing and new deepwater provinces,” she added.
“Recent discoveries in East Africa will be developed towards the end of the decade and West African pre-salt also shows longer-term potential. Furthermore, barriers to financing are being reduced as markets show signs of recovery. The bottom line is an extremely positive outlook for the deepwater industry, with even more projects coming to fruition beyond the report’s forecast period.”
