Longtail expected to support stronger subsea tree awards in second half of 2026

July 16 (oilnow.gy) ExxonMobil’s planned Longtail development offshore Guyana is among the major projects expected to support stronger global subsea tree contract activity during the second half of 2026.

Westwood Global Energy Group on July 15 identified Longtail as a key future source of demand as offshore operators advance large developments requiring subsea production equipment.

Subsea trees are installed on wells at the seabed to control the flow of oil and gas. They form part of the production system connecting subsea wells to offshore processing facilities. Westwood reported that 87 subsea trees had been awarded globally so far in 2026.

Recent awards include a Baker Hughes contract to supply up to 17 subsea trees for Azule Energy’s Greater PAJ project. TechnipFMC also secured awards covering Equinor’s Omega South, Tyrihans Nord, and Brime fields. The company received another award for Vår Energi’s Cerisa development offshore Norway.

OneSubsea was selected to supply subsea trees for Equinor’s Troll West IGR North project.

Westwood expects additional awards in the coming weeks for Eni’s Baleine Phase 3 development offshore Ivory Coast and the Geng North project offshore Indonesia.

Activity is expected to strengthen further during the second half of 2026 as operators advance Longtail, TotalEnergies’ Venus development offshore Namibia, Chevron’s Agbami infill program in Nigeria, and Vår Energi’s Balder Next project.

Westwood maintained its base-case forecast of demand for approximately 1,380 subsea trees between 2026 and 2030. Brazil, Norway, and Nigeria are expected to account for approximately 40% of global demand during that period.

Longtail is expected to mark Guyana’s entry into non-associated gas development.

The development is tied to discoveries in the southeastern section of the Stabroek Block, including Haimara, which is expected to form part of the ninth offshore project.

The project is expected to produce approximately 1.2 billion cubic feet of natural gas per day and about 250,000 barrels per day of condensate.

Production is scheduled to begin in 2030, and is expected to continue for approximately 30 years.

ExxonMobil operates the Stabroek Block with a 45% interest. Hess Corporation, owned by Chevron, holds 30%, while CNOOC Limited holds 25%.