Independent Project Analysis (IPA) has launched a joint industry study to examine the subsea market and to understand the current related global and regional trends in escalation, cost, and price.

The spending on subsea developments has grown significantly in the last few years as the industry moves into deeper and deeper waters. The current subsea developments are much more complex than even a few years ago. Today, we see more large developments and developments designed to handle high pressure as well as subsea separation and even compression. At the same time, the subsea equipment and installation markets continue to consolidate and become more regional as well as oligopolistic.

Key Questions to Answer

With this backdrop, operators are asking questions such as:

How do regional characteristics, regional requirements, and market segmentation affect subsea cost?
Is there a difference in subsea escalation between the various regions of the world?
Do long-term frame agreements or standardization of design drive better costs and prices?
What drives the price of a subsea tree with the same functionality to be vastly different in different regions of the world?

The goal of this study is to provide answers to these questions using a large industry sample as well as to provide comparison against Industry for operators that participate in this study.

Key Deliverables

Progress reports will be delivered at three points during the study, with the first one due in November 2012. The deliverables from this study will only be available to participating companies.

How to Participate

The study was launched in May 2012 with the confirmed participation of five (5) international oil and gas operators. For more information about the IPA Subsea Joint Industry Study or to request a prospectus and proposal, please contact IPA Manager for Exploration and Production Neeraj Nandurdikar at nnandurdikar@ipaglobal.com.

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