West Africa Platform Supply Vessel (PSV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The West Africa platform supply vessel (PSV) market is expected to grow at a CAGR of around 1.5% during the forecast period. With the COVID-19 outbreak in Q1 of 2020, the market witnessed a negative impact with international crude oil price decline. As the major crude oil producer, Nigeria was significantly impacted by low revenue collection from the oil & gas sector. Such a situation had negatively impacted the ongoing exploration and production projects in the country. Factors such as increasing concentration on offshore areas for exploration are expected to drive the market. However, the presence of militants and its violence in the region is likely is expected to hinder the market growth during the forecast period.

Key Highlights

• Increasing upstream activities in the offshore oil & gas sector are likely to drive the market during the study period.
• West Africa's offshore region is expected to hold more than five thousand million barrels of crude oil and condensate. With the government's focus to increase crude oil production, the platform support vessel providers have the opportunity to offer their service for exploration and production activities in the near future.
• With active participation in crude oil & natural gas exploration and production, Nigeria is expected to dominate the region during the study period.

Key Market Trends

Upcoming Upstream Activities are Likely to Drive the Market

• With the growing demand for crude in international markets like Asia-Pacific, West African countries like Nigeria have significantly increased their oil and gas activities in the offshore region. In 2019, Nigeria has completed wells of around 100, an increase of 19 wells from the previous year.
• Nigeria in May 2021 concluded an agreement to invest nearly USD 10 billion for deep-water oil exploration. The Nigerian National Petroleum Corp. with Royal Dutch Shell Plc, Exxon Mobil Corp., Total SA, and Eni SpA is likely to create a new production sharing contract for Oil Mining Lease 118.
• To develop its offshore oil & gas sector, countries like Ghana are likely to borrow USD 1.7 billion to accelerate oil and gas exploration by acquiring and developing assets.
• Further, Senegal has a few upcoming projects like a development project in the Sangomar field. By 2023, the first phase of the project is targeting to produce 230 million barrels of crude oil.
• Hence, with such upcoming projects, the region is likely to drive the market studied during the forecast period.

Nigeria is Likely to Dominate the Market

• Nigeria is the leading country in the region for oil & gas production. In 2020, Nigeria had the highest crude oil production of around 1798 thousand barrels per day. Moreover, it had a gas production of around a 49.4billion cubic meters.
• With a target of increasing its crude oil reserves up to 40billion barrels by 2025, the country is likely to increase its exploration and production activities in both onshore and offshore locations.
• The country has a few upcoming offshore projects, like the offshore development work on Etan & Zabazaba oilfields in the deepwater OPL 245 block. Hence, such a project would create demand for PSV in the West African region.
• Further, the country has proven reserves of around 36.9 thousand million barrels of crude oil, and 5.5 trillion cubic meters in 2020. The reserves, along with upcoming investments and targets, are expected to have a positive outlook for the PSV market in Nigeria, thus making it dominant in the region during the study period.

Competitive Landscape

The West Africa platform supply vessel (PSV) market is consolidated. The key players in the market include Team Offshore Nigeria Limited, Petromarine Nigeria Limited, Aquashield Oil & Marine Services Limited, and GE Offshore Marine Services S.L among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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