world offshore modification, maintenance & operations market forecast 2015-2019

World Offshore Maintenance, Modifications & Operations Market Forecast 2015-2019energy business insight

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• Prospects• Technologies• Markets

Kjell Andersen StatoilHydro

Offshore MMO – From Slow to GrowIn 2014, demand for offshore MMO services totalled $95bn for the world’s 8,061 offshore platforms. DW expect this to increase at a CAGR of 5.4% over the period 2015-2019, driven predominantly by ageing infrastructure requiring maintenance and modification to maintain current production levels in the face of growing global energy demand.

Over the forecast period, $426.1bn is estimated to be spent on MMO relating to fixed platforms and $55.6bn on MMO of floating platforms. However, a 12% decline in MMO expenditure is expected in 2015. This is due to the delay of some major modi-fications by operators and a reduction as some aspects of MMO that are not directly associated to production are cut.

Asia and North America will continue to be the market leaders in MMO expenditure with a com-bined share of 45% over the forecast period. Asia’s share is driven by a combination of increasing off-shore production platforms, and the move towards deepwater in less mature regions. Asset services, asset integrity and modifications markets are to be led by North America, whilst Asia has the largest support services spend over the forecast period. By sector, asset services accounts for the largest share of spend (57%), followed by modifications (27%).

The World Offshore Maintenance, Modifications &

Operations Market Forecast 2015-2019 analyses

the demand for services in four key equipment

and service lines: offshore asset services, asset

integrity services, support services and modifica-

tions. The new edition’s key themes are:

• Drivers & indicators – a review of factors

influencing the service lines including: off-

shore fixed & floating platform population,

population & GDP growth, the move to

green energy, oil supply & demand, offshore

oil & gas, natural gas, oil & gas challenges,

politics & regulation and the asset lifecycle.

• Service line analysis – for offshore asset

services, asset integrity services, support ser-

vices and modifications split out by service

line, asset type and region with competitive

landscape and detailed supply chain analysis.

• Regional market analysis – expenditure by

service line 2010-2019 with trend com-

mentary and speed reads for Africa, Asia,

Australasia, Eastern Europe & FSU, Latin

America, Middle East, North America, Nor-

way, UK and Rest of Western Europe.

World Offshore Maintenance, Modifications & Operations Market Forecast 2015-2019energy business insight

e: [email protected] t: +44 (0)203 4799 505


Aberdeen | Faversham | Houston | London | Singapore

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Why purchase the World Offshore Maintenance, Modifications and Operations Market Forecast?

Our market forecasting is trusted by sector players worldwide, with clients including the world’s top-10 oil & gas companies, oilfield ser-vices companies and private equity firms. Our proven process includes:

• Unique and proprietary data – updated year-round from published sources and insight gained from industry consultation.

• Methodology – developed through a combination of primary data gathering and in-house analysis. We have utilised our own in-house databases to form the basis for the offshore models. Assumptions used to generate market demand are the result of our primary and secondary research. De-mand side analysis by service line provides a metric on which to establish future oppor-tunities and provide a context for market share assessment.

• Market forecasts – comprehensive ex-amination, analysis and ten-year view of maintenance, modifications & operations demand for key service lines, with historic data covering the period 2010-2014 and forecast data for 2015-2019.

• Concise report layout – consistent with DW’s commitment to delivering value for our clients, all our market forecasts have a concise layout consisting of industry back-ground and supporting materials condensed to enable quick review with ‘speed-read’ summaries of key points throughout.

• An essential report – for financial institu-tions, equipment manufacturers, offshore engineering, construction, operations & maintenance companies and contractors, drilling companies, oil & gas companies and government agencies & departments wanting to make more informed investment decisions.

ISBN 978-1-910045-15-2

"The market forecast is extremely detailed and just

what we needed"- Investment Bank

"The report was very helpful for our business planning in

the sector"- Services Company

2015

World Offshore Maintenance, Modifications

and Operations Market Forecast

Prospects, Technologies, World Markets

2015-2019

© 2015 Douglas-Westwood 2World Offshore Maintenance, Modifications and Operations Market Forecast 2015-2019By purchasing this document, your organisation agrees that it will not copy or allow to be copied in part or whole or otherwise circulated in any form any of the contents without the written permission of Douglas-Westwood

Contents

Table of Contents

1 Summary & Conclusions ..........................................7Summary ......................................................................................................................................... 8

Conclusions .................................................................................................................................... 9

2 Drivers & Indicators .............................................. 10Offshore Fixed & Floating Platform Population .................................................................... 11

Population & GDP Growth Drive Energy Demand ............................................................. 12

From Black to Green ................................................................................................................. 13

Oil – Supply & Demand ............................................................................................................. 14

Offshore Oil & Gas..................................................................................................................... 15

Natural Gas .................................................................................................................................. 16

Oil & Gas Challenges ................................................................................................................. 17

Politics & Regulation ................................................................................................................... 18

Asset Lifecycle ............................................................................................................................. 19

3 Methodology ............................................................ 20Methodology: Overview ............................................................................................................ 21

Barriers & Limitations ................................................................................................................ 22

4 Asset Services ......................................................... 23Definitions – Equipment & Service Lines Covered .............................................................. 24

Market Forecast: by Service Line ............................................................................................. 25

Market Forecast: by Asset Type ............................................................................................... 26

Market Forecast: by Region ...................................................................................................... 27

Competitive Landscape .............................................................................................................. 28

Supply Chain Analysis ................................................................................................................. 29

5 Asset Integrity ......................................................... 30Definitions – Service Lines Covered ....................................................................................... 31






6 Support Services ..................................................... 37Definitions – Service Lines Covered ....................................................................................... 38


Market Forecast: By Asset Type .............................................................................................. 40




7 Modifications ........................................................... 44Definitions – Service Lines Covered ....................................................................................... 45






8 Regional Market Analysis ...................................... 51Regional Summary....................................................................................................................... 52

Africa ............................................................................................................................................. 53

Asia ................................................................................................................................................ 54

Australasia .................................................................................................................................... 55

Eastern Europe & FSU ................................................................................................................ 56

Latin America ............................................................................................................................... 57

Middle East .................................................................................................................................. 58

North America ............................................................................................................................ 59

Norway ......................................................................................................................................... 60

Rest of Western Europe ............................................................................................................ 61

UK .................................................................................................................................................. 62

9 Appendix .................................................................. 63Data and Text Conventions ...................................................................................................... 64


Contents

Figures

Figure 1: Global MMO Expenditure by Region 2010-2019 ......................................................................8

Figure 2: Global Average MMO Cost per Barrel vs Opex Inflation 2010-2019 ............................9

Figure 3: Total number of platforms by Region 2010-2019 ................................................................... 11

Figure 4: Global floating and fixed platforms by Region 2010-2018 ................................................. 11

Figure 5: Global Population Growth & Energy Demand, 1965-2014 ............................................... 12

Figure 6: Historic Primary Energy Demand by Region, 1965-2012 ................................................... 12

Figure 7: The Changing Energy Mix .................................................................................................................... 13

Figure 8: Climate Change (Temperature Change) ...................................................................................... 13

Figure 9: Oil Price & Demand ............................................................................................................................... 14

Figure 10: World Liquids Production Growth, 2005-2014 .................................................................... 14

Figure 11: Global Oil Supply – Onshore/Offshore Split 2000-2020 ............................................... 15

Figure 12: Global Deepwater Capex by Region 2009-2018 ................................................................. 15

Figure 13: Levellised Cost of Energy ($/mwh) .............................................................................................. 16

Figure 14: Natural Gas Prices ($/mbtu) ........................................................................................................... 16

Figure 15: Oil & Gas Production versus E&P Spend.................................................................................. 17

Figure 16: Skilled Workers Age Category ..................................................................................................... 17

Figure 17: Asset Service Expenditure by Service Line 2010-2019 ..................................................... 25

Figure 18: Asset Service Expenditure by Service Line 2015-2019 ..................................................... 25

Figure 19: Asset Service Expenditure by Type 2010-2019 ..................................................................... 26

Figure 20: Asset Service Expenditure by Type 2015-2019 ..................................................................... 26

Figure 21: Asset Service Expenditure by Region 2010-2019 ................................................................ 27

Figure 22: Asset Service Expenditure by Region 2010-2014 and 2015-2019.............................. 27

Figure 23: Asset Services Supply Chain ............................................................................................................ 29

Figure 24: Asset Integrity Expenditure by Service Line 2010-2019 ................................................... 32

Figure 25: Asset Integrity Expenditure by Service Line 2015-2019 ................................................... 32

Figure 26: Asset Integrity Expenditure by Type 2010-2019 ................................................................... 33

Figure 27: Asset Integrity Expenditure by Type 2015-2019 ................................................................... 33

Figure 28: Asset Service Expenditure by Region 2010-2019 ................................................................ 34

Figure 29: Asset Integrity Expenditure by Region 2010-2014 and 2015-2019............................ 34

Figure 30: Asset Integrity Supply Chain ............................................................................................................ 36

Figure 31: Support Services Expenditure by Service Line 2010-2019.............................................. 39

Figure 32: Support Services Expenditure by Service Line 2015-2019.............................................. 39

Figure 33: Support Services Expenditure by Type 2010-2019 ............................................................. 40

Figure 34: Support Services Expenditure by Type 2015-2019 ............................................................. 40

Figure 35: Support Services Expenditure by Region 2010-2019......................................................... 41

Figure 36: Support Services Expenditure by Region 2010-2014 and 2015-2019 ...................... 41

Figure 37: Support Services Supply Chain ...................................................................................................... 43

Figure 38: Modifications Expenditure by Service Line 2010-2019 ..................................................... 46

Figure 39: Modifications Expenditure by Service Line 2015-2019 ..................................................... 46

Figure 40: Modifications Expenditure by Type 2010-2019 ..................................................................... 47

Figure 41: Modifications Expenditure by Type 2015-2019 ..................................................................... 47

Figure 42: Modifications Expenditure by Region 2010-2019 ................................................................ 48

Figure 43: Modifications Expenditure by Region 2010-2014 and 2015-2019 .............................. 48

Figure 44: Modifications Supply Chain .............................................................................................................. 50

Figure 45: Offshore MMO Expenditure by Region 2010-2019 ........................................................... 52

Figure 46: Total MMO Expenditure by Region 2010-2014 and 2015-2019 ................................. 52

Figure 47: Africa Offshore MMO Expenditure 2010-2019 .................................................................... 53

Figure 48: Africa MMO Expenditure 2010-2014 and 2015-2019 ...................................................... 53

Figure 49: Asia Offshore MMO Expenditure 2010-2019 ....................................................................... 54

Figure 50: Asia MMO Expenditure 2010-2014 and 2015-2019 .......................................................... 54

Figure 51: Australasia Offshore MMO Expenditure 2010-2019.......................................................... 55

Figure 52: Australsia MMO Expenditure 2010-2014 and 2015-2019 .............................................. 55

Figure 53: Eastern Europe & FSU Offshore MMO Expenditure 2010-2019 ................................ 56

Figure 54: Eastern Europe & FSU MMO Expenditure 2010-2014 and 2015-2019 ................... 56

Figure 55: Latin America Offshore MMO Expenditure 2010-2019 ................................................... 57

Figure 56: Latin America MMO Expenditure 2010-2014 and 2015-2019 ..................................... 57

Figure 57: Middle East Offshore MMO Expenditure 2010-2019 ........................................................ 58

Figure 58: Middle East MMO Expenditure 2010-2014 and 2015-2019 .......................................... 58

Figure 59: North America Offshore MMO Expenditure 2010-2019 ................................................ 59

Figure 60: North America MMO Expenditure 2010-2014 and 2015-2019 .................................. 59

Figure 61: Norway Offshore MMO Expenditure 2010-2019 ............................................................... 60

Figure 62: Norway MMO Expenditure 2010-2014 and 2015-2019 ................................................. 60

Figure 63: RoWE Offshore MMO Expenditure 2010-2019 .................................................................. 61

Figure 64: RoWE MMO Expenditure 2010-2014 and 2015-2019 .................................................... 61

Figure 65: UK Offshore MMO Expenditure 2010-2019 .......................................................................... 62

Figure 66: UK MMO Expenditure 2010-2014 and 2015-2019 ............................................................ 62


Contents

Tables

Table 1: Asset Service Expenditure by Service Line 2014-2019.......................................................... 25

Table 2: Asset Service Expenditure by Type 2014-2019 ......................................................................... 26

Table 3: Asset Service Expenditure by Region 2014-2019..................................................................... 27

Table 4: Asset Services Competitive Landscape .......................................................................................... 28

Table 5: Asset Integrity Expenditure by Service Line 2014-2019........................................................ 32

Table 6: Asset Integrity Expenditure by Type 2014-2019 ....................................................................... 33

Table 7: Asset Service Expenditure by Region 2014-2019..................................................................... 34

Table 8: Asset Integrity Competitive Landscape .......................................................................................... 35

Table 9: Support Services Expenditure by Service Line 2014-2019 .................................................. 39

Table 10: Support Services Expenditure by Type 2014-2019 ............................................................... 40

Table 11: Support Services Expenditure by Region 2014-2019 .......................................................... 41

Table 12: Support Services Competitive Landscape .................................................................................. 42

Table 13: Modifications Expenditure by Service Line 2014-2019 ....................................................... 46

Table 14: Modifications Expenditure by Type 2014-2019 ....................................................................... 47

Table 15: Modifications Expenditure by Region 2014-2019 .................................................................. 48

Table 16: Modifications Competitive Landscape .......................................................................................... 49

Table 17: Total MMO Expenditure by Region 2014-2019 ...................................................................... 52

Table 18: Modifications Five Year Forecast Expenditure by Service Line 2015-2019 ............. 52

Table 19: Africa Offshore MMO Expenditure 2014-2019 ...................................................................... 53

Table 20: Asia Offshore MMO Expenditure 2014-2019 ......................................................................... 54

Table 21: Austalsia Offshore MMO Expenditure 2014-2019................................................................ 55

Table 22: Eastern Europe & FSU Offshore MMO Expenditure 2014-2019 .................................. 56

Table 23: Latin America Offshore MMO Expenditure 2014-2019 .................................................... 57

Table 24: Middle East Offshore MMO Expenditure 2014-2019.......................................................... 58

Table 25: North America Offshore MMO Expenditure 2014-2019 ................................................. 59

Table 26: Norway Offshore MMO Expenditure 2014-2019 ................................................................. 60

Table 27: RoWE Offshore MMO Expenditure 2014-2019 .................................................................... 61

Table 28: UK Offshore MMO Expenditure 2014-2019............................................................................ 62


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world offshore modification, maintenance & operations market forecast 2015-2019

Economy & Finance

offshore asset services

offshore mmo services

asset integrity services

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offshore platforms

world offshore maintenance

offshore oil gas

asset type