Prospects for well intervention are beginning to improve following a lengthy downturn in the oil sector that began when prices fell in late 2014. Global upstream spending has now been increasing slowly for several quarters and was back over $50 billion in the third quarter of this year. In addition, operational expenditure has also begun to rise, at least among NOCs and integrated companies. Combined, these provide a bigger pie from which funds for well intervention can be drawn.
McKinsey’s offshore datasets show that, following the price slump in 2014-15, operators initially suspended all offshore well activity, including well work and turnarounds. Since then, turnaround activity saw an acceleration in 2016 and into 2017, which took a little while to get through, pushing out the well work. Now, over the last year, operators have started spending on well work once again and activity is rising.
To help you navigate these changes, and this year’s Asia Pacific well intervention market, Offshore Network have published a report on Asia Pacific’s offshore well intervention market dynamics and opportunities. The whitepaper includes:
- A typical 100,000 b/d producer could generate an additional $70-$350 million in the first year by focusing on well intervention
- Opportunity identification and management should include a global opportunity register, owned by asset managers and generated by a multidisciplinary team
- McKinsey found that units with some real local representation, and those regional units that operate with some autonomy perform best
If you’d like this insight, access your copy of the report here: http://bit.ly/2HhzJMH
For more information, please contact Erin Smith on: esmith@offsnet.com