Background and Challenge
DW were tasked by one of our clients, a global cable installation contractor, to examine the market potential of 4D seismic technology and in particular Permanent Reservoir Monitoring (PRM) technologies to understand any actionable synergies with their core business operations. A key challenge was the relatively nascent state of the seismic technology and lack of mature supply chain.
Approach and Recommendations
Through a number of detailed interviews with key industry personnel DW delivered a market analysis covering the following major areas:
- Review of seismic technology, drivers and competition/substitutes.
- Projected market outlook in value, kilometres of cables required and anticipated vessel days. The projections were performed on a country-by-country basis taking into account specific oil & gas companies that were likely to employ the technology.
- Review and likely evolution of the supply chain. A key part of our analysis focused on which part of the current offshore industry would take ownership and key EPC responsibility of this nascent industry.
- Recommendations on potential JVs with cable manufacturers or seismic contractors.
Result
Our recommendations helped our client develop a strong understanding of the risks/opportunities involved in investing in this segment.