Global Deepwater Pipeline Installation to Feel Effects of Project Delays

World deepwater pipeline demand is expected to decrease in 2016 & 2017 due to the continued delay of project start-ups as operators are conserving cash flow and looking to lower development costs by delaying sanctions. West Nile Delta, Shah Deniz Phase 2, Bardegg 2, Baronia EOR and Rota 3 Pipeline installations are the contributors to the significant increase in the 20”-24” category for 2016.
The North Sea is expected to see a dip in installation activity in 2016 and 2017 but is expected to recover in 2018. Statoil’s Johan Sverdrup project will contribute to the recovery in 2018 and recently awarded marine contractors Saipem, Technip and Ocean Installer sections of the SURF package. The contributors of the significant increase in the 25+ category for the latter part of the forecast is the Nord Stream 2 project and the oil export for the Johan Sverdrup project.
The Africa/Mediterranean and Asia Pacific regions are poised to account for 56% of global pipeline installation from 2016 through 2021.

The drastic decrease in pipeline kilometers for the Africa/Mediterranean region is due to Moscow suspending the Turk Stream gas pipeline project in response to Turkey shooting down a Russian jet in Syria. Gazprom terminated Saipem’s $2.6 billion contract to build a section of the proposed Turkish Stream pipeline beneath the Black sea.

Saipem already had a vessel in the field that was preparing to begin laying sections of the pipeline when the contract was cancelled so they have taken Gazprom to court seeking 759 million euros from South Stream Transport.
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Source: Deepwatermarkettrends
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