Offshore MMO spend to contract 12% in 2015, Douglas-Westwood says

LONDON -- Douglas-Westwood are forecasting a 12% decline in offshore maintenance, modifications and operations (MMO) expenditure compared to 2014, when spend on services for the world’s 8,061 offshore platforms totaled $95 billion.

“This decline is due to the delay of some major modifications by operators and a reduction in some aspects of MMO that do not directly impact production” stated the World Offshore Maintenance, Modifications & Operations Market Forecast report author, Fay Bridges.

“Then we expect a return to growth and a total spend of $482 billion over the period 2015 to 2019, which equates to an annual compound growth rate of 5.4%,” Bridges said. “Asia is expected to become the market leader in MMO expenditure, overtaking the Middle East, with a share of 21% over the forecast period. This shift is driven by a combination of increasing numbers of offshore production platforms in Asia, and the move towards deepwater in less mature regions.”

“Asset services, asset integrity and modifications expenditure will be led by North America, whilst Asia has the biggest support services spend over the forecast period. By sector, asset services accounts for the largest share, 57%, followed by modifications at 27%,” Bridges added.

The new edition of Douglas-Westwood’s World Offshore Maintenance, Modifications & Operations Market Forecast analyses the demand for services in the four key equipment and service lines of offshore asset services, asset integrity services, support services and modifications.