BAKU, Azerbaijan, July 29. High capex oil and gas projects may come on stream amid Russian cut-off, Trend reports with reference to GlobalData.
“The ongoing Russia-Ukraine conflict is expected to support the development of offshore and subsea projects around the world. With numerous countries shunning Russian oil and gas, there is an increasing need to ramp up production from other regions,” said Ravindra Puranik, Oil and Gas Analyst at GlobalData.
Puranik pointed out that subsea technology has proven to be reliable in waters at a variety of depths.
“Since most of the production, processing, storage, and power distribution equipment is moved on to the seabed, it minimizes the capex and opex in offshore environments. This is encouraging companies to make significant investments in subsea projects,” added the analyst.
The advancements in subsea technology are considerably reducing the costs and operational risks associated with offshore production. Subsea enables the production of oil and gas even in less economical wells by connecting them to an existing subsea network. For example, Laggan and Tormore are the gas and condensate fields located 125km northwest of the Shetland Islands in the UK. hey utilized a 140km-long subsea tie-back to the Shetland Gas Plant.
“High capital costs are a major deterrent for deepwater oil and gas projects. However, several efforts being directed towards reducing costs, including streamlining material procurement, optimizing subsea architecture, and simplifying equipment installation, are helping in reducing the overall costs. Furthermore, subsea contractors are achieving significant cost reductions by lowering the project execution cycle time,” noted Puranik.
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