The Brazil Subsea market was valued at USD 4,553.10 million in 2019 and is forecasted to reach USD XX million by 2027, with a CAGR of 6.82% during the forecast period (2020-2027).
Subsea is completely submerged offshore ocean equipment, placed on the seabed, to control the flow of crude oil and natural gas from the reservoir to a host processing facility. The term is frequently used in connection with oceanography, marine or ocean engineering, ocean exploration, remotely operated vehicle (ROVs) autonomous underwater vehicles (AUVs), submarine communications or power cables, seafloor mineral mining, oil and gas, and offshore wind power. The Subsea market will be likely to advance in the coming years in Brazil due to the extensive subsea technology progress. By equipment type, the market is divided into wellheads, Subsea trees, Manifolds, Flowline connectors, Control Systems, and Others. On the basis of service, type includes asset management, product optimization, inspection, maintenance & repair services, vessel operations and others. Based on system type, the market is divided into Subsea Boosting System, Subsea Injection System, Subsea Compression System, and Subsea Separation System. Subsea oil and gas reserves, exploration and production are found majorly in Brazil's country in the South America region.
Market Dynamics
Drivers
- Surge in ultra-deep and deep oil exploration drives the subsystems market.
- Brazil's offshore industry is expanding
Restraints
- Difficulty in maintaining and manufacturing the subsea systems equipmen
Surge in ultra-deep and deep oil exploration drives the subsystems market
The surge in ultra-deep and deep oil exploration is the major driving factor for the market growth in Brazil. Brazil has become one of the few areas in the world outside the U.S. where they can find profitable drilling opportunities. Operators have ramped up exploration and production activities of Latin American countries especially in offshore Brazil. The largest fields discovered during the last 10 years in Brazil were found deep offshore, with more than 77 BBOE added an average field size of 550 MMBOE. Most of the discoveries so far are located in the pre-salt of the Campos and Santos Basins in Brazil. The governments in Brazil are taking steps to improve competitiveness and encourage the development of offshore resources in particular.
For instance, The National Hydrocarbons Agency (ANH), Colombia’s oil regulator, has created specific regulations for offshore hydrocarbons development. In offshore free trade zones, it has reduced oil revenue taxes from 25% to 15% and eliminated the value-added tax. The world’s largest energy companies are placing enormous bets on Brazil, a region rich with oil that many avoided in the past due to restrictive economic policies and the threat of resource nationalism.
In December 2018, Petrobras unveiled plans to invest $84.1bn in deepwater exploration and production projects in Brazil, as well as raise $27bn through asset sales and partnerships by 2023. Exxon Mobil Corp., Royal Dutch Shell PLC, and others have grouped offshore auctions in Mexico and Brazil, fracking prospects in Argentina and big discoveries in the small nation of Guyana. Exxon and Shell joined Brazil’s state-run Petróleo Brasileiro SA to win access to several offshore prospects, and Australia’s BHP Billiton Ltd. in 2016 became the first-ever foreign company to enter a partnership with Pemex, teaming up to develop the Trion oil field in the Gulf of Mexico. The field’s reserves are estimated at about 500 million barrels of crude. Therefore, an upward moment in ultra-deep and deep oil explorations and major oil & gas companies have grouped to offshore auctions in Brazil drive the subsea market.
Competitive Landscape
The Brazil subsea market is competitive with regional and international players. The companies are competing based on the price, product specifications, and market presence. The Brazil subsea market share is characterized by competition based on technologies, prices and service provided to clients. Major companies include TechnipFMC Plc, Subsea 7, Aker Solutions, Onesubsea, Dril-Quip, Inc., Oceaneering International, Inc and many more. The major focus of these companies is to achieve superior quality products at lower operational cost and their investments are driven in the same direction.
