Total spending to surpass US$42bn by 2027. (Image source: Rystad Energy)

Rystad Energy has predicted a significant influx of capital in the subsea market segment, with a 10% annual compound growth rate (CAGR) from 2024 to 2027

This includes players involved in production and processing systems such as subsea umbilical risers and flowlines (SURF), trees, wellheads, manifolds and other components. 

Total spending can reach beyond US$42bn by the end of 2027 as operators increasingly focus on advanced equipment and installation services. Signed in June, Woodside Energy's contract with DeepOcean for subsea inspection, maintenance, and repair (IMR) services for Sangomar field offshore Senegal remains one of the latest instances of such developments. 

This suggests cumulative spending to reach as high as US$32bn by the end of 2024; a 6.5% increase from the previous year. This growth is driven by strong activity across services, equipment and SURF, largely fueled by significant investment in deep and ultra-deepwater projects. 

Deepwater developments are set to dominate the subsea sector, accounting for 45% of the market from 2024 to 2028. Golfinho in Mozambique is a significant greenfield project.

Ultra-deepwater activities, driven by major floating production, storage and offloading (FPSO) initiatives are projected to capture 35% of the market. One of the notable brownfield projects in the sector is Nigeria's Egina.

In the SURF sector, global installations, 10% of which can come from Angola, are anticipated to reach 3,500 kms in 2024. The installation rate is anticipated to grow at a CAGR of 15% from 2024 to 2028, with Angola being a major market.

TotalEnergies holds a strong position in deepwater and ultra-deepwater exploration and production in Africa, especially in Angola and Nigeria.

CCS applications

The subsea sector is also expanding beyond traditional oil and gas applications. The push for carbon capture and storage (CCS) is creating new opportunities for suppliers and spurring research and development in this emerging market. Consequently, suppliers are leading the way in developing more efficient subsea production systems, which are set to see broader adoption.

“The subsea market has rebounded robustly from the impacts of Covid-19, which caused a significant 20% drop in expenditure in 2020. By 2021, the industry began to recover, with spending increasing by 5% to reach US$23bn. Looking ahead, we anticipate steady growth in the subsea sector, fueled by advancements in deepwater exploration and CCS. This recovery highlights the industry’s resilience and suggests a promising trajectory of consistent progress,” said Sanwari Mahajan-analyst, supply chain research, Rystad Energy.

The companies will develop one integrated platform for subsurface workflows. (Image source: Adobe Stock)

To boost efficiency from its exploration and production assets, Aker BP has announced a long-term partnership with SLB to co-develop a digital platform powered by artificial intelligence

The new platform will generate advanced digital solutions in the cloud for Aker BP by utilising the Delfi digital platform. Aker BP’s current application portfolio will be transferred to the cloud so that it becomes one integrated platform for subsurface workflows. When this is supported by high-performance computing speed of the cloud, combined with AI and, SLB and Aker BP's domain expertise, unprecedented access will be unlocked to previously untapped data for a success-oriented approach. 

In 2022, the subsurface community was benefitted by an Aker BP and Halliburton partnership, when the duo introduced a cloud application called Field Development Planning for integrated well planning services. 

“By co-developing AI-powered digital technologies, we will transform Aker BP’s subsurface workflows, accelerating planning cycles, increasing production, and reducing costs across their entire E&P life cycle,” said Rakesh Jaggi, president - digital and integration, SLB. “We have made a long-term commitment with Aker BP to continuously improve the subsurface part of their platform, driving constant efficiency optimisation and more sustainable energy production.”

E&P company of the future

“The platform we develop in partnership with SLB is a key step in realising our strategy to build the E&P company of the future and cement our position as a digital leader,” said Per Øyvind Seljebotn, SVP Exploration & Reservoir Development, Aker BP. “Leveraging the cloud for data-driven subsurface workflows will increase efficiency and value creation, while helping to lower the environmental impact from our fields and discoveries.” 

In one of its latest efficiency-boosting solutions, SLB has introduced advanced artificial lift systems that offers uninterrupted live surveillance and real-time optimisation.

An essential part of enabling AI-driven workflows is establishing a unified data environment. The new platform builds on SLB’s commitment to the Open Group’s OSDU Technical Standard and close integration with Microsoft’s Azure Data Manager for Energy.

“Moving to the Delfi platform is a big step forward on our data-driven journey. The use of Azure Data Manager for Energy, a strong and open collaboration with our digital ecosystem, and a high ambition to leverage GenAI are key benefits in this partnership with SLB,” said Paula Doyle, chief digital officer, Aker BP.

The CongoLNG project will be significant in meeting the country's energy needs. (Image source: Adobe Stock)

Energy and marine consultancy ABL has been appointed by Eni to provide marine warranty survey services (MWS) for the offshore transportation and installation (T&I) campaign for Phase 2 of the Marine XII Congo LNG development project

Phase 2 of the project envisages the fabrication, transportation and installation of a new floating LNG vessel (FLNG), a converted floating separation, storage and booster unit (FSU), wellhead platforms and associated tie-in pipelines and ancillaries offshore the Republic of Congo.

The CongoLNG project that commenced in April 2023 is expected to reach an overall production capacity of 3 mn tons per year (approximately 4.5 bn cu/m per year) from 2025.

ABL’s scope of work includes the technical review of key project and procedural documentation, drawings and calculations, the suitability surveys of the proposed marine fleet for all T&I operations, and on-site attendance to review and approve attendances for warranted operations. 

The company's involvement on the project is expected to run from 2024 until the completion of the offshore works. It has also supported Phase 1 since February 2023. ABL’s operation in France will lead the company’s scope of work.

Supporting energy infrastructure

“Winning this latest project in the Congo is a testament to the successful work we have been doing in the country over many years, establishing ABL France as the leading technical consultant for the successful and safe delivery of energy infrastructure projects in Africa’s Francophone countries,” said Guillaume Henin, operational manager for ABL’s activities in Congo.

ABL France, based in Paris, provides the company’s full technical offering to support renewables, maritime and oil & gas sectors in France, Benelux countries, Spain and Francophone Africa.

“We are really pleased to continue our work in supporting the Republic of Congo’s energy infrastructure with this key project,” Henin said. 

The CongoLNG project will help the country meet its energy needs while seizing the opportunity to exploit surplus gas through LNG production, allowing it to join the group of global exporters of LNG in record time. 

In September 2023, Congo witnessed a mega deal that was signed between SNPC, Eni Congo, Lukoil, and Eni SPA for the purchase and sale of LNG. 

ABL’s operations in Africa cover a coast-to-coast footprint, with offices in Nigeria, Ghana, Senegal and Mauritania, South Africa, and Egypt. Additional marine surveyor presence includes Algeria and Namibia.