Subsea processing can help oil and gas producers increase production and reduce the costs associated with recovery. Around the world, governments are focusing on subsea processing technologies and this is expected to propel the growth of the market in the coming years.
A new report from Research and Markets segments the global subsea processing market into four divisions: boosting, compression, separation and injection. Overall, the market is forecast to expand at a compound annual growth rate (CAGR) of 18.5 percent in the period 2013-2018.
Subsea processing technologies allow production from offshore wells instead of host facilities and also handling of the produced fluids upstream of surface facilities. According to Research and Markets, there are wide-ranging benefits from using such technologies, including enhanced oil and gas recovery, reduced platform operating cost, less gas hydrate formation in flow-lines, higher NPV and a boost in production.
Rapid advances are being made in the technology, making it possible to process oil and gas in harsh temperatures and pressures. Other technological improvements include advanced booster pumps, gas injection for increased recovery, and the development of separation methods to separate oil at the production facility instead of separating it at the hub.
The report notes that one of the major challenges faced by participants in the market is the uncertainty associated with subsea production. Subsea processing requires a high level of technical expertise and any failure in the system may lead to revenue loss, the research firm said.