Demand for Offshore MMO Services Totalled $95bn for the World’s 8,061 Offshore Platforms

Date: 2015-08-05

In 2014, demand for offshore MMO services totalled $95bn for the world’s 8,061 offshore platforms. Operators are now focussed on controlling costs throughout the supply chain and there is significant pricing pressure impacting the 2015 and 2016 outlook. However, the offshore MMO market is projected to grow at a CAGR of 5.4% over the period 2015-2019, driven predominantly by an expanding and ageing infrastructure requiring maintenance and modification to maintain current production levels in the face of growing global energy demand.

Over the forecast period, $426.1bn is estimated to be spent on MMO relating to fixed platforms and $55.6bn on MMO of floating platforms. However, a 12% decline in MMO expenditure is expected in 2015. This is due to the delay of some major modifications by operators and a reduction as some aspects of MMO that are not directly associated to production are cut.

Asia and North America will continue to be the market leaders in MMO expenditure with a combined share of 45% over the forecast period. Asia’s share is driven by a combination of increasing offshore production platforms, and the move towards deepwater in less mature regions. Asset services, asset integrity and modifications markets are to be led by North America, whilst Asia has the largest support services spend over the forecast period. By sector, asset services accounts for the largest share of spend (57%), followed by modifications (27%).

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