Subsea contracts awarded by Petrobras show Brazil leading demand in the coming years

(PN) The recent contracts awarded by Petrobras to the SLB Onesubsea group for the supply of subsea equipment for the Sépia and Atupu fields in the Santos Basin, and Roncador in the Campos Basin, signal the importance that Brazil will have for the subsea industry in the coming years. According to a recent analysis published by Rystad Energy, global investments by operators in subsea installation equipment and services from 2024 to 2027 are expected to reach a whopping US$42 billion. Rystad points out that investment activity has been especially strong in South America and Europe, where large projects are advancing significantly and attracting new resources. Brazil, in particular, will continue to be an attractive market due to its vast pre-salt reserves, which have generated high demand for equipment.

The consultancy also assesses that Petrobras remains a dominant operator in the contracting of subsea technologies, particularly in South America, where it has invested heavily in pre-salt developments. Spending in Brazil on the subsea industry is expected to increase by 18% compared to the previous year, reaching US$6 billion in 2024, largely due to Petrobras projects. Another trend identified by Rystad is that deepwater developments will be the flagship of new demands, representing 45% of the market from 2024 to 2028. The Barracuda Revitalization in Brazil, Johan Castberg and Breidablikk in Norway, and Golfinho in Mozambique are some of the projects in the spotlight. Ultra-deepwater projects, driven by major floating production, storage and offloading (FPSO) initiatives in Brazil and Guyana, are projected to capture 35% of the market. South America is expected to lead the market globally, with 500 subsea tree installations in the next five years. The largest ultra-deepwater developments on the radar include Yellowtail, Tilapia and Redtail in Guyana, as well as Búzios 8, Búzios 9, Sépia 2 and Atapu 2 in Brazil.

For the SURF segment (acronym for subsea riser, umbilical and flowline systems), global installations are expected to reach 3,500 kilometers by 2024. Once again, Brazil will lead the way in terms of demand, accounting for 22% of this total. Next in line are the US and Angola, which are expected to contribute 15% and 10%, respectively.

“The subsea market has recovered robustly from the impacts of COVID-19, which caused a significant 20% drop in spending in 2020. In 2021, the industry has started to recover, with spending increasing by 5% to $23 billion. Looking ahead, we expect continued growth in the subsea sector, driven by advances in deepwater exploration and carbon capture and storage (CCS). This recovery highlights the resilience of the industry and suggests a promising trajectory of steady progress,” said Sanwari Mahajan, supply chain research analyst at Rystad Energy.