Subsea Capital Expenditures (Capex)

Subsea Capex

Based on Douglas-Westwood’s “The Global Offshore Report,” the global

File:Subsea Capex and Opex Distribution by Geographical Area (Douglas-Westwood).png

Subsea Capex and Opex Distribution by Geographical Area (Douglas-Westwood)

subsea CAPEX and OPEX in 2009 was about $250 billion and will Subsea CAPEX and OPEX Distribution by

File:Deepwater Subsea Capex Breakdown.png

Deepwater Subsea Capex Breakdown

Geographical Area (Douglas- Westwood be $350 billion in 2013.

File:Shallow-Water Subsea Capex Breakdown.png

Shallow-Water Subsea Capex Breakdown

The major cost components of subsea CAPEX are equipment, testing, installation, and commissioning. The key cost drivers for subsea CAPEX are number of wells, water depth, pressure rating, temperature rating, materials requirement, and availability of an installation vessel. Subsea cost refers to the cost of the whole project, which generally includes the capital expenditures (CAPEX) and operation expenditures (OPEX) of the subsea field development.

References

[1] AACE International Recommended Practice, Cost Estimation Classification System, AACE, 1997, NO. 17R-97.

[2] Douglas-Westwood, The Global Offshore Report, 2008.

[3] C. Scott, Investment Cost and Oil Price Dynamics, IHS, Strategic Track, 2006.

[4] U.K. Subsea, Kikeh – Malaysia’s First Deepwater Development, Subsea Asia, 2008.

[5] Deep Trend Incorporation, Projects, http://www.deeptrend.com/projects-harrier.htm, 2010.

[6] American Petroleum Institute, Specification for Subsea Wellhead and Christmas Tree Equipment, first ed., API Specification 17D, 1992.

[7] American Petroleum Institute, Specification for Wellhead and Christmas Tree Equipment, nineteenth ed., API Specification 6A, 2004.

[8] FMC Technologies, Manifolds & Sleds, FMC Brochures, 2010.

[9] Mineral Management Service, Life Time Cost of Subsea Production Cost JIP, MMS Subsea JIP Report, 2000.

[10] R. Goldsmith, R. Eriksen, M. Childs, B. Saucier, F.J. Deegan, Life Cycle Cost of Deepwater Production Systems, OTC 12941, Offshore Technology Conference, Houston, 2001.