(PN) Brazil and neighboring Guyana are recognized as the two countries with the greatest potential for growth in the offshore market. While the Brazilian coast still reserves many opportunities in the pre-salt and, in the future, also in the Equatorial Margin, Guyana has increasingly assumed a prominent role in the global offshore industry with rich reserves on its coast. Therefore, the global demand for underwater equipment and structures should be driven by these two countries in the coming years, in projects operated by ExxonMobil and Petrobras. This is according to a new survey by Westwood, which predicts a demand for 1,440 wet Christmas trees between 2024 and 2028. The value is 20% higher compared to the period from 2019 to 2023.
Wet Christmas trees are equipment that forms the link between the subsea production system and the oil well. It is through this technology that the operator opens and closes valves, according to changes in pressure, flow and temperature.
Subsea tree demand for 2024 is expected to total approximately 290 units according to Westwood, based on Brent crude oil prices of $75 to $85 per barrel. Of this total, 204 units are classified as “Firm”, 60 units as “Probable” and 26 units (9%) classified as “Possible”, based on an assessment of subsurface, commercial and geopolitical factors.
Key subsea tree contracts to watch in the first quarter of 2024 include Shell’s Bonga North off the coast of Nigeria, Energean’s Katlan development (Israel), Eni’s Merakes East (Indonesia) and the Atapu II development and Sépia II from Petrobrás, off the coast of Brazil.
Between 2024 and 2028, ExxonMobil is expected to commission around 259 wet Christmas trees, driven by the company’s developments in the Stabroek block. This region is one of the most promising oil and gas discoveries in the world, with estimated recoverable resources exceeding 8 billion barrels of oil equivalent to date. Petrobras is expected to demand approximately 227 units in the same period, continuing its investments in the pre-salt.
Last year, for example, OneSubsea closed a new contract to supply Christmas trees to Petrobras. The agreement encompasses the delivery of 15 units of equipment of this type, as well as electro-hydraulic distribution units in phase 11 of the Búzios field, in the Santos Basin. The contract has an estimated value of between US$100 million and US$200 million. Additionally, OneSubsea will be responsible for associated installation, commissioning and maintenance services. The equipment is being built at OneSubsea’s subsea equipment excellence center in Taubaté (SP), and is expected to begin delivery in the second quarter of 2025.
Brazil Energy Insight 
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