Latin America’s Offshore Energy Challenges

To coincide with the publication of the first edition of the Offshore Latin America Oil & Gas Market Report, Infield Systems have published a free whitepaper that provides some of the highlights, facts and figures from this new report as well as providing topical analysis on the challenges facing Petrobras, PEMEX and Latin America. This new whitepaper can be downloaded free of charge from the Infield e-library simply by following this link

NEW FORECAST REPORT PUBLISHED BY INFIELD SYSTEMS

Offshore Latin America Oil & Gas Market Report To 2014

The first edition of the Offshore Latin America Oil & Gas Market Report To 2014 is devoted to this region's burgeoning offshore energy sector provides an in-depth analysis of trends and developments impacting the region’s offshore oil and gas industry. The report provides comprehensive analysis on market, industry and geopolitical issues that impact Latin America's oil and gas scene.

All prices shown are for hard copy printed reports and/or PDF and are exclusive of delivery and VAT where applicable.

All purchases of the Offshore Latin America Oil & Gas Market Report will include one free copy of the Offshore Latin America Oil & Gas Activity Map To 2014. For further details of this new map please follow this link.

The Latin American Market:

Within the Latin American Market Update report, it is forecast that Capex investment is set substantially increase over the next five years compared to 2005/09; from US$48bn to $66bn. Brazil is clearly the major player in the region and will experience a massive increase in investment over 2010/14, from $40bn in 2005/09 to $54bn. This represents over 81% of total offshore Capex in the region going forward to 2014. Brazil is expected drive regional Capex on the floating platform, pipelines and subsea sectors, while Mexico and Venezuela are expected to be leaders in the fixed platform market over the next five years. Overall, more than three-quarters of the forecast growth in regional Capex to 2014 is expected to be directed towards Brazilian offshore oil and gas activity.

Infield System also forecasts that the pipelines sector will be the leading offshore oil and gas market segment in Latin America, with forecast Capex of US$23bn. Capex on Subsea infrastructure is expected to reach US$18bn, while Capex on floating platforms is forecast to reach US$17bn. Key in driving interest in this region is the great potential of pre-salt fields in Brazil such as Tupi which will provide plenty of opportunities for the deployment of floating production systems in the future, as well as provide stimulus to expenditure on subsea infrastructure and pipelines.

Going forward we expect the number of FPSOs to grow, supported by Brazil’s planned active deepwater exploration. FPSOs are particularly suited to the region due to the remote location of the fields and the deep to ultra-deepwater environment. While the development of Brazil’s pre-salt fields is likely to be influential in driving the country’s demand for floating production units, the healthy pace of continued development of Brazil’s post-salt fields will be a driver as well. All in all, we expect Brazil, led by its NOC, Petrobras, to be the leading player by far in the Latin American region’s floating production sector. The fixed platform market in Latin America is dominated by Venezuela, Mexico and Trinidad and Tobago. These energy producers possess offshore oil and gas reserves in mainly shallow waters, making the utilisation of fixed platforms appropriate.

The report also analyses the broader geopolitical and market context for the Latin American offshore oil and gas scene. While prospects for the offshore oil and gas sector in Latin America are promising, it is likely to be a sector that will remain dominated by the region’s main national oil companies: Petrobras, PEMEX and PDVSA. Partially privatised Petrobras is expected to remain the key operator for the development of Brazil’s pre-salt fields.

Mexico has made some tentative legislative changes related to its petroleum sector which permits PEMEX to negotiate incentive-based contracts with foreign participants. The extent to which this will take place is as yet unclear, but PEMEX is likely to remain the driver of offshore Capex in Mexico for the foreseeable future. Meanwhile PDVSA is the main operator for offshore developments in Venezuela, although there is more scope for foreign operators in offshore gas than in other sectors of that country’s hydrocarbons industry.

Why you should buy this report:

• The report contains data developed by Infield Systems’ market modelling process, OFFPEX, which is based on a unique “bottom up approach” to forecasting. OFFPEX’s component by component and project by project forecasting process is robust and has a proven track record

• It provides an independent and comprehensive analysis of the issues impacting the offshore oil and gas market in Latin America today, and how this impacts developments in that market over the next five years. Therefore it enables the reader to make use of the report’s five year forecast period for strategic decision making in this dynamic region

• It details, for each major offshore oil and gas producing country in the region, the level of capital expenditure and the rate of new installations for each market, including: fixed platforms, floating production units, pipelines, control lines and subsea infrastructure

Report Contents:

• Executive Summary provides an overview of the Latin American offshore oil and gas market highlighting the main points of the report and identifying the most crucial trends affecting the offshore oil and gas market

• Global Market Context reviews the drivers behind the global offshore oil and gas business, including current oil market supply and demand fundamentals, oil price trends, and the growth of Asian energy consumption and its impact on the global oil market. It also provides a comprehensive analysis of the global market and policy impact of the Macondo MC252 oil spill in the Gulf of Mexico on the offshore oil and gas world

• Regional Market Context (a new chapter that has been included in Infield Systems’ Regional Perspective reports) assesses the prospects of the offshore natural gas sector in Latin America. The section includes a detailed outline of the market, political and regulatory environment impacting the offshore Latin American oil and gas scene, with particular focus on Mexico, Brazil and Venezuela

• Sector Analysis & Forecasts contains detailed analysis and forecasting of each of the main sectors in the offshore oil and gas industry: fixed platforms, floating production units, and pipeline and control lines. Analysis is provided by country, and each sector is analysed by the following sub-sections: facility type, water depth, weight, and build; and in addition by diameter and material for pipelines. For the subsea market detailed analysis and forecasts are provided by country, market (development drilling, EPC and installation) and subsea equipment (trees and manifolds), manufacturer and operator

• Appendices provide regional maps showing overview of current and future oil and gas fields, and existing and future floating production systems and fixed platforms

Searchable Online Projects Database:

Purchasers of the Region Perspectives Offshore Latin America Market Update will receive 12 months’ free access to an online database of fields being planned or considered for development in the current year and four years forward offshore Latin America via InfieldLive.

Details about each project include:

• Field Operator

• Project Name

• Development Type

• Dates On Stream / Discovery / Depletion

• Reserves

• Field Production Rates

• Location

• Development Type

• Water Depths

• Project Status

• Numbers of Subsea & Surface Wells

• High Temperature / High Pressure

Subscriptions can be upgraded to include other regions, time frames and other data sets from the Infield Offshore Energy Database. InfieldLive provides access to the previous day’s updates.

About Infield Systems Limited:

Infield is an independent energy research and analysis organisation that is dedicated to the provision of accurate; data, market sector and regional forecast reports, mapping, published maps, analysis, business advisory, business strategy and transaction support products and services to the offshore oil, gas, renewable energy and associated marine industries. Infield services clients in over 40 countries from a wide range of organisations including E&P companies, contractors, manufacturers, government agencies and financial institutions. Infield is widely acknowledged as the definitive independent information resource and has been involved in many merger, acquisition and commercial market due diligence projects.

More information:

For more information about Infield Systems' products and services including market forecast reports, data services, mapping and business strategy, analysis and transaction support then please Steve Adams .

Steve Adams
International Sales Manager | Infield Systems Limited
Telephone: +44 (0) 20 7423 5010 (direct) | +44 (0) 207 423 5000 (s/board) | +44 (0) 7773 019 569 (cell)
Email: steve.adams@infield.com | Website: http://www.infield.com