The decline in oil prices could impact prospects for subsea processing (SSP) in deepwater production, according to market analysts Douglas-Westwood (DW)
Statoil’s Åsgard compression project in the Norwegian Sea is estimated at US$2.5bn, even as rising costs over the project remains a matter of concern. With the falling oil prices, these concerns would be enhanced, stated DW analysts.
SSP involves a series of advanced technical processes designed to inhibit costs and improve chances of recovery from deepwater fields. However, DW’s Subsea Joint Industry study in 2014 stated that there was sufficient interest in technologies such as boosting, but progress had been slow in areas like separation and gas compression, which are familiar to SSP.
Reducing costs would be required to boost SSP solutions and there have been positive developments in standardisation procedures, such as the joint industry project between Statoil and DNV GL. Nevertheless, the benefits of SSP must be “clear and readily understood”, emphasised DW. If operators are not keen to engage in capex-intensive projects, it would limit field trials, therby affecting relatively unproven technologies such as compression.
