AUSTRALIA has been identified as one of the key targets for British subsea companies according to a new survey conducted by Subsea UK – a major participant in AOG 2017.
Offshore USA, West Africa, South East Asia and Australia were identified as the major markets for UK subsea service suppliers in what they believe is an improving market.
According to the 300 member companies surveyed by Subsea UK, 27% are predicting increasing exports by 50% or more in 2017. More than half (56%) expect overseas sales to increase between one per cent and 49% with only 17% not expecting any increase in export revenues.
By comparison, 32% expect domestic revenues to remain static in 2017 while 22% are anticipating a decline in domestic sales. Of those who expect domestic revenues to increase, the majority are forecasting between 10% and 30% additional revenues from the UK Continental Shelf.
Export sales currently account for over half or more of the annual turnover of 32% of respondents with 55% seeing less than half of their turnover attributed to exports and only 13% with no export revenues.
According to the survey, the majority of export sales are related to oil and gas however, 58% of respondents are also exporting to the renewables industry (33% in offshore wind and 19% in tidal).
Speaking about the release of the survey results, Subsea UK chief executive, Neil Gordon, recently stated that the subsea industry remains a British export success story.
“These findings underline the global demand for UK subsea engineering, technology and services and the fact that our enterprising companies are increasing their export efforts in a bid to reduce the reliance on the mature North Sea. It is no surprise that the majority of growth will come from diversification, both into other sectors and other geographies,” Mr Gordon said.
“However, companies must strive to maintain their market share in the North Sea where the focus on subsea tie-backs, squeezing more out of older assets and late life extension presents opportunities for subsea.”
The export picture changes slightly for 2018 and beyond when companies are looking to increase exports to West Africa, South East Asia and the Middle-East.
AOG is seen as a leading promotor of the global subsea sector in this region and the sector will again be on display when Australia’s largest oil and gas event is staged in Perth this month.
With a history of support for subsea industry, the event organisers have made a high-powered Subsea Forum an essential element of AOG in 2017.
Subsea UK, in conjunction with the Society for Underwater Technology (SUT) and Subsea Energy Australia (SEA), are providing significant input for the Subsea Forum which will focus on how the Australian subsea industry adjusts to the challenges and opportunities in the current market during the forum.
Subsea UK chief executive Neil Gordon said AOG is an internationally significant conference for countries to meet and share their relative expertise and strengths.
AOG 2017 will be staged at the Perth Convention Exhibition Centre (PCEC) from February 22 to 24.