As local and foreign investors continue to indicate increasing interest in Africa's oil and gas sector, the continent is set to remain the largest market for Remotely Operated Vehicle (ROVs), followed by Latin America and North America, through 2015, a new research released by Douglas-Westwood at the weekend has shown.
ROVs are used in under-water operations in crude oil production and development and Nigeria being the highest producer in Africa, hosts most of the continent's investment in ROV, with Oceaneering, a foreign company, as the largest player in the country, followed by Tilone Subsea Nigeria Limited, an indigenous giant.
According to the Douglas-Wood report, the world fleet of work-class ROVs consists of 641 units operated by 21 companies.
The report identifies Oceaneering as the largest operator with 241units, representing 32per cent of the global total.
The report indicated that all of the fundamental market drivers for the ROV business were in a period of growth, and was likely to continue for the foreseeable future.
Douglas-Wood said total yearly market expenditure for ROV support of underwater operations was capable of hitting $1.692billion in 2015, from $891 million in 2010.
Douglas-Westwood's latest edition of the World ROV Market Forecast 2011-2015, details the market for the operation of work-class ROVs.
Strong growth in ROV operations expenditure is forecast in all regions outside the Middle East, with Africa set to remain the largest market, followed by Latin America and North America.
"Although ROVs are used in many sectors ranging from academic research to military applications and salvage, the largest commercial user is the offshore oil and gas industry, where they have become an essential tool for deepwater operations," said the report.
The author of the report and Chairman of Douglas-Westwood, John Westwood, said: "In the primary offshore oil and gas activity sector a long period of high oil prices and surging deepwater activity has driven orders for offshore drilling rigs to numbers not seen for decades. These rigs, together with large numbers off subsea construction vessels are driving a new surge in ROV orders," he said.
He noted that despite continuing turmoil in financial markets, in 2011 it seemed that the offshore oil and gas industry was facing a future of significant growth.
"In addition, new, albeit much smaller, markets are developing in sectors such as the offshore wind. The next five years look good for ROV operators," he said.
The World ROV Market Forecast 2011-2015, identifies and discusses the key underlying drivers and defines their influence on the global work-class ROV market.
Source: This Day Live