Recent years have seen a shift in focus in the subsea EPC (engineering, procurement and construction) sector from mechanical tree designs towards value added instrumentation, monitoring and processing technologies, a report said.

The joint venture between Cameron and Schlumberger to form OneSubsea in 2013 is a deliberate attempt to unite the former’s subsea skill with the latter’s downhole and processing expertise, explained the note by Douglas-Westwood (DW), a leading provider of market research and consulting services to the energy industry worldwide.

Likewise, the recent partnership between FMC and Technip to form Forsys Subsea, combines subsea production, processing and installation capabilities, minimising both supply chain and technological interfaces for the end user.

Ultimately, E&P companies have been gradually moving from a ‘pick and choose’ approach, to procuring systems from a single vendor. DW data suggests that 15 years ago, nearly a fifth of subsea wells installed had different manufacturers for the trees and controls.

In 2015 it is expected that over 95 per cent of subsea trees installed will have wellheads and controls from the same manufacturer, according to Douglas-Westwood.

This trend is set to develop further with an appetite for standardisation of subsea equipment that has been driven by cost pressures, lower oil prices and the subsequent need to deliver projects on-budget, on-time, the note said.

The subsea sector is highly consolidated with just five players servicing the $12billion annual requirements of the global E&P community.

The two largest, FMC and OneSubsea, account for approximately two-thirds of the market but despite this, have shown no signs of resting on their laurels, forging strategic partnerships to reshape and redefine the commercial landscape. This has become increasingly critical as projects have grown in scale and complexity. – TradeArabia News Service