Monday 17 February 2020

Oil markets are off to a rocky start in 2020, with heightened tensions in the Middle East, unprecedented Australian bushfires and the rise of the COVID-19 virus in China. For the offshore oil & gas sector, however, 2020 should be the second year of growth for an industry still reeling from the most severe downturn in its history. Westwood Global Energy Group expects $63 billion (bn) of contract awards for new offshore O&G production infrastructure (subsea production systems, SURF, pipelines, fixed platforms and floating production systems) in 2020 – a 49% increase over 2019 and the highest in seven years.

Floating production systems (FPS) spend is projected to reach $20bn in 2020 up $6.5 billion from the previous year.

Subsea tree contract awards underwhelmed in 2019 with only 212 tree orders compared to 289 in 2018. This though was mainly down to delays in projects.

More