Subsea capital expenditure (Capex) is set to grow at nearly 15% to 2017, according to the latest figures from analyst Infield Systems.

In total, oil and gas operators are expected to invest more than US $19 Bn in Capex for subsea production equipment this year, a figure that is likely to grow to $33.3 Bn by 2017.

The analyst said the outlook for the subsea industry is “amongst the most promising in the offshore oil and gas world”, with Capex to grow at 14.8% CAGR (Compound Annual Growth Rate) to 2017. In recent years, offshore market conditions have forced operators to push their E&P efforts to deeper, more remote and harsher locations in order to tackle declining production, it said.

In addition, the advancement of subsea technology – coupled with improved manufacturing techniques – has lowered the cost associated with developing certain types of fields. This, it continued, had enabled a number of smaller, previously uneconomical fields to be tied back to existing infrastructure.

Last year proved to be an encouraging year for the global subsea industry, said Infield. For the first time since 2008, Infield recorded 416 new subsea tree orders in 2012, compared with 321 orders the previous year. More than 320 trees were brought onstream – 60 more than in 2011.

This positive trend looks set to continue into 2013, added Infield, which is forecasting more than 500 new subsea tree orders and up to 370 subsea tree installations, mainly driven by investments in the ‘Atlantic Triangle’; West Africa, Brazil and the US GoM.

Among the most anticipated awards are: Total’s Egina field offshore Nigeria, with an expected order for more than 35 trees, and Chevron’s award for Block 14 offshore Angola, which could potentially add a further 21 trees. An award is also expected for BP’s PAJ development during the second half of 2013, adding up to 30 tree orders to the market.

In Brazil Petrobras is moving towards making an award for the first tranche of subsea infrastructure on its Libra and Carioca fields, as well as the second tranche for its Franco development.