The subsea market is set to experience a significant inflow of capital from 2024-2027, with total spending set to exceed US$42bn at a CAGR of 10% over this period, according to Rystad Energy

The growth is driven by investment in deep and ultra-deep projects and includes players involved in production and processing systems such as subsea umbilical risers and flowlines (SURF), trees, wellheads, manifolds and other components.

Driven by rising operator expenditure on equipment and installation services, investment activity has been particularly robust in regions such as South America and Europe, where major projects are making significant progress and attracting new investment. Brazil, with its vast pre-salt reserves, is driving strong demand for subsea equipment and SURF, with anticipated expenditure set to surge 18% to US$6bn in 2024. Meanwhile, in Europe, Norway is experiencing a resurgence in activity, fuelled by favourable market conditions and technological advancements.

Deepwater developments are set to dominate the sector, accounting for 45% of the market from 2024 to 2028. Significant greenfield projects include Barracuda Revitalization in Brazil, Johan Castberg and Breidablikk in Norway and Golfinho in Mozambique. Key brownfield initiatives include Balder Future, Gullfaks South and Schiehallion in Norway and the UK.

Ultra-deepwater projects, driven by major floating production, storage and offloading (FPSO) initiatives in Brazil and Guyana, are projected to capture 35% of the market, led by South America.

In 2024, ExxonMobil's expanded operations, with a focus on Guyana, are expected to significantly boost subsea tree installations, while in the SURF sector, global installations are anticipated to reach 3,500 km in 2024., with Brazil expected to account for 22% of this total, followed by the USA and Angola.

Looking ahead, TechnipFMC, OneSubsea and Aker Solutions are expected to lead the way in the supply of subsea trees. In terms of operators, Petrobras remains a dominant operator, particularly in South America, where it has heavily invested in pre-salt developments. In Europe, Equinor and Aker BP have extensive subsea portfolios, with significant tieback projects on the Norwegian Continental Shelf, while in the USA, Shell and BP lead with substantial investments in deepwater and ultra-deepwater exploration and production. TotalEnergies holds a strong position in Africa, especially in Angola and Nigeria.

The subsea sector is also expanding beyond traditional oil and gas applications, Rystad notes. The push for carbon capture and storage (CCS) is creating new opportunities for suppliers and spurring research and development in this emerging market. Consequently, suppliers are leading the way in developing more efficient subsea production systems, which are set to see broader adoption.

“The subsea market has rebounded robustly from the impacts of Covid-19, which caused a significant 20% drop in expenditure in 2020. By 2021, the industry began to recover, with spending increasing by 5% to reach US$23bn. Looking ahead, we anticipate steady growth in the subsea sector, fuelled by advancements in deepwater exploration and carbon capture and storage (CCS). This recovery highlights the industry’s resilience and suggests a promising trajectory of consistent progress,” said Sanwari Mahajan, analyst, supply chain research, Rystad Energy.

Aramco has signed a Memorandum of Understanding (MoU) with King Abdullah University of Science and Technology (KAUST) to fund up to US$100mn in research and development projects over the next 10 years

The funding will support a wide range of initiatives, from essential research to applied technologies. Areas of collaboration include energy transition, sustainability, materials transition, upstream technologies and digital solutions, with an emphasis on developing commercially viable outcomes.

Topics identified within the energy transition field include liquids-to-chemicals conversion and future refineries research, as well as low-carbon aviation fuels. Sustainability research will include hydrogen, carbon capture and storage, renewables and energy storage solutions. Additional projects are expected to focus on advanced carbon materials and geothermal energy, among other things.

Deepening the relationship

Amin H. Nasser, Aramco president & CEO, said, “This collaboration will further deepen Aramco’s relationship with KAUST, and we look forward to exploring new possibilities and frontiers with a strong focus on R&D and technology development, reflecting our firm belief in the importance of innovation across industries and applications.”

ATony Chan, KAUST president, said, “The partnership exemplifies KAUST's dedication to fostering impactful research that drives technological advancements and addresses real-world challenges. Our collaboration with Aramco will leverage our combined expertise to develop innovative solutions for a sustainable future."

This month, we are taking a break from the Paradigm Shifts to let you know that the visionary author behind this series will be speaking at three events in the Middle East this fall.

With a rare blend of unique insight and engaging storytelling, Larry Wilson has captured the attention of HSE practitioners worldwide, by delving into the human factors that lead to over 95% of accidental injuries. These events promise to be a unique opportunity to experience firsthand the insights of an intellectual pioneer whose ideas are at the forefront of Human Factors Safety discourse.

Larry has been a leader in human factors management for over 25 years. The state-to-error pattern he uncovered is involved in over 95% of accidental injuries. His Critical Error Reduction Techniques have been proven by neuroscience to reduce injuries on and off the job. These techniques have been taught to over 4.5 million people in over 75 countries.

Larry is one of the most active keynote speakers at HSE conferences around the globe, speaking in over 80 cities a year. Known for his ability to distill complex concepts into accessible and thought-provoking narratives, Larry’s sessions are a testament to his thought leadership and expert insight. His new keynote session, “New Perspectives on the Hierarchy of Controls and the Bowtie Model,” offers a unique viewpoint on the role of Human Factors in incident causation and outcomes.

This fall, attendees in the Middle East will have the opportunity to witness Larry’s expertise live at three key events.

These gatherings are more than just lectures; they are interactive experiences designed to provoke thought, inspire dialogue, and foster a deeper understanding of the human factors that impact our safety every day. Whether you are a professional seeking to stay ahead of industry trends, a student eager to expand your horizons, or simply someone with a passion for safety, these events are guaranteed to provide value.

Don’t miss your opportunity to see Larry Wilson, author of the Paradigm Shifts series, live at these events:

HSE 2024 KSA – Riyadh, September 17 - 18

Health, Safety and Environment Forum – Dubai, November 12 – 13

HSE Learning Summit – MENA – Abu Dhabi, November 19 - 20

If you have questions, just send us a note at This email address is being protected from spambots. You need JavaScript enabled to view it.
We hope to see you in one of these events!

The SafeStart Team

ADNOC Gas plc and its subsidiaries have recorded an adjusted net income of US$1,190mn for Q2 2024, a 21% year-on-year (y-o-y) improvement

Revenues for the Q2 period of US$6,076mn represent an increase of 13% y-o-y. Within the UAE, increased population and industrial growth have contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.

Highlights of the quarter include the announcement in July that ADNOC Gas will transfer ownership of the US$2.4bn gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. ADNOC Gas will continue to manage and operate the project.

In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais LNG project, following which Mitsui & Co, Shell, bp, and TotalEnergies were announced as equity partners. ADNOC also awarded an EPC contract valued at over US$5.5bn. ADNOC Gas is managing the design and construction and is looking to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake.

Focus on AI, digitalisation and technology

The focus on AI, digitalisation and technology has paid off for the company, with US$1bn in value realised since 2016 as a result, and a further US$2bn expected over the next five years.

Dr. Ahmed Alebri, chief executive officer of ADNOC Gas, said, “Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin. The 21% improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”

The announcement follows healthy revenues and profits recorded at other ADNOC divisions, such as ADNOC Drilling.

Expanding pipeline networks in the Middle East are offering fertile opportunities for contractors and technology providers

Data from Global Energy Monitor’s Global Oil Infrastructure Tracker shows the Middle East leading the continuing global expansion of crude oil transmission pipelines, as countries maintain and expanding their production and export facilities. Around 7,073 km of crude oil pipelines are under development (proposed and under construction) in the region, at an estimated capex of US$49.7bn, with Iraq and Iran topping the list.

Data in the Global Gas Infrastructure Tracker shows that 8,169 km of gas pipelines are under development in the Middle East at a cost of US$67.9bn, with Iran and Saudi Arabia leading the ranking. In Iran, new pipelines will help to meet high domestic demand from its industrial petrochemicals and residential sectors, while in Saudi Arabia and other Gulf states gas pipelines will support a shift to gas as a result of energy transition strategies and plans to develop global gas businesses.

Gas pipeline networks

Saudi Arabia’s Jafurah unconventional gas development for example involves a network of around 1,500 km of main transfer pipelines, flowlines and gas gathering pipelines; while contracts have recently been awarded for the Phase 3 expansion of the Master Gas System, which involves the installation of around 4,000 km pipelines. Sinopec and L&T Energy Hydrocarbon (LTEH) are among the beneficiaries, with the LTEH contract reported to be the largest cross-country pipeline EPC project awarded to the company to date.

In the UAE, ADNOC Gas awarded contracts to expand the natural gas pipeline network in 2023, and recently awarded contracts to NMDC Energy P.J. S.C and Galfar Engineering Contracting W.L.L. Emirates for the next phase of the ESTIDAMA project, which will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 km to more than 3,500 km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates.

Find out more in the latest issue of Oil Review Middle East, https://oilreviewmiddleeast.com/magazines/orme_2024_07_31/spread/?page=22

Ali Haider, regional director, Nomadic and Nadeem Ahmed, senior manager, Nomadic discuss the need for oil and gas operators to adopt measures to proactively manage their workforce needs

The International Labour Organization (ILO) estimates that nearly six million people are directly employed by the petroleum industry and over 60 million jobs are indirectly created by the industry. As governments around the world look to implement key directives from COP 28, including those emerging from the completion of the first ever ‘global stocktake’ to review global efforts for addressing climate change, skilled individuals who can help businesses navigate the complexities of emerging technologies, ensure operational efficiency, and foster continuous innovation will play an increasingly important role.

Meeting workforce demands amid regulatory changes

The International Monetary Fund (IMF) predicts a robust 4.0% GDP growth in the UAE, pointing to a rising demand for skilled workers in the oil and gas industry. In order to successfully facilitate the influx of skilled professionals who will sustain and support the expansion of the industry, there is a need for a holistic approach towards managing their mobility and deployment. The diverse talent pool in the UAE, encompassing over 200 nationalities, further highlights the necessity of such strategic management.

As the oil and gas industry evolves, so do the laws and regulations governing the UAE's talent pool, such as further enhancements to the country’s various Emiratization initiatives and its very successful Golden Visa and Virtual Working Programs, as well as the evolving self-sponsorship framework that underpins them. The implications of compliantly navigating the UAE’s immigration landscape are paramount and add an additional layer of complexity to workforce management.

For the energy sector, there are several strategies that can be adopted to ensure that there are effective measures in place for strategic workforce planning, talent pool structuring, rotation management, and contingency planning for placements or projects that may extended. Implementing these measures will require businesses to remain abreast of key developments in the immigration landscape and to be able to count upon actionable intelligence related to their workforce – both areas that require a holistic approach towards immigration and mobility.

Automation and compliance for workforce mobility

Oversight of business visits and cross-border moves is now more than ever, a technically challenging, pressing need for companies and their travelling workforces. Unexpected travel restrictions, border digitalisation, and other regulatory changes have seen travel become an area of compliance risk. In addition to staying informed and anticipating changes, businesses should look to professional guidance to ensure smooth operations amidst an evolving immigration landscape. Today, advancements in technology allow forward-thinking companies to streamline these processes, saving time and operational costs. Solutions like those offered by Nomadic play a crucial role in ensuring compliance across the entire workforce through automation and offer a streamlined approach to short-term immigration in the dynamic oil and gas industry.

Non-compliance with these evolving regulations can have severe consequences, with a wide spectrum of sanctions outlined in the UAE immigration and labour laws. These sanctions range from monetary penalties to various types (and levels) of operational sanctions. Penalties may be multiplied for each instance of non-compliance or if there is a history of non-compliance.

A resilient framework for oil and gas sustainability

The evolution of the oil and gas industry demands compliance with sector-specific regulations for operational success. Those operating in the sector need to adopt measures for proactively managing their workforce needs, including seeking professional counsel and leveraging technological solutions to assess and anticipate regulatory changes. The impact these changes can have on operations, costs, and compliance is too significant to ignore.

Energy companies must make informed decisions about operational strategies, resource allocation, and workforce management. Businesses that seamlessly integrate regulatory compliance and workforce planning into their operational framework ensure long-term sustainability and growth while avoiding potential financial setbacks due to compliance issues or failures in procuring the correct visas or permits for their employees.