An uptick in global deepwater spending could benefit projects in Asia Pacific in the form of lower exploration and production costs, as well as technological efficiencies, although low oil prices remain a cause for concern.
Total annual deepwater capex is expected to rise from around $50 billion currently to nearly $60 billion by 2022, driven mainly by projects in Guyana, Brazil and Mozambique, according to consulting firm Wood Mackenzie.
The region desperately needs to boost oil and gas production, and deepwater exploration in domestic waters and equity stakes in international deepwater projects continue to draw interest.
Northbridge Industrial Services plc (LON:NBI) hires and sells specialist industrial equipment. With offices or agents in the UK, USA, UAE, Belgium, Germany, France, Australia, New Zealand, Malaysia, Singapore, China, Brazil and South Korea, Northbridge has a global customer base. This includes utility companies, the oil and gas sector, shipping, banking, mining, construction and the public sector.