FAVERSHAM, UK – Five major players in the subsea sector service the annual $12-billion annual requirements of the global E&P industry, according to analyst Douglas-Westwood (DW).
The two largest, FMC Technologies and OneSubsea, account for roughly two-thirds of the market, and have both formed strategic partnerships this year to consolidate their position. This has become increasingly critical, DW claims, as projects have grown in scale and complexity.
In recent years, the analyst adds, there has been a shift in emphasis away from mechanical subsea tree designs toward value-added instrumentation, monitoring, and processing technologies.
Hence the recent partnership between FMC Technologies and Technip to form Forsys Subsea, which combines the two companies’ capabilities in subsea production, processing, and installation in order to minimize supply chain and technological interfaces for the end user.
Fifteen years ago, there were different manufacturers for the trees and controls of nearly a fifth of subsea wells installed. This year, however, DW forecasts that more than 95% of subsea trees installed will have wellheads and controls from the same manufacturer.
The trend could strengthen due to demand for standardization of subsea equipment brought on by cost pressures, the lower oil price, and the imperative to deliver projects on budget and on time.