Douglas-Westwood (DW) is forecasting a 12% decline in offshore maintenance, modifications, and operations (MMO) expenditure compared to 2014, when spend on services for the world’s 8,061 offshore platforms totaled $95 billion.
“This decline is due to the delay of some major modifications by operators and a reduction in some aspects of MMO that do not directly impact production,” said Fay Bridges, author of DW's “World Offshore Maintenance, Modifications, and Operations Market Forecast” report. “Then we expect a return to growth and a total spend of $482 billion over the period 2015 to 2019, which equates to an annual compound growth rate of 5.4%.
“Asia is expected to become the market leader in MMO expenditure, overtaking the Middle East, with a share of 21% over the forecast period,” Bridges added. “This shift is driven by a combination of increasing numbers of offshore production platforms in Asia, and the move toward deep water in less-mature regions.”
Bridges noted that asset services, asset integrity, and modifications expenditure will be led by North America, while Asia will have the biggest support services spend over the forecast period. By sector, asset services accounts for the largest share, 57%, followed by modifications at 27%.
This new edition of DW’s “World Offshore Maintenance, Modifications, and Operations Market Forecast” report analyzes the demand for services in the four key equipment and service lines comprising offshore asset services, asset integrity services, support services, and modifications.