Insight
Offshore costs outlook H1 2025: inflation continues to ease
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In contrast to the rollercoaster of the last few years, the offshore market should remain stable with continued capital discipline from the supply chain and operators and demand that is showing signs of flattening in most sectors. Cost inflation will ease in most sectors, 1-4% for deepwater rigs, well services, subsea and facilities. There will be no relief in the installation market; costs will rise by 12% as demand continues to grow and the market nears full capacity. However, there are risks, with the market vulnerable to demand shocks. Operator-supplier relationships will be critical to cost control. Operators will need excellent planning to ensure they hold preferred status with suppliers, optimising costs and execution.
Table of contents
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Executive summary
- Offshore rig rates will soften as demand flattens
- Drilling and completion (D&C) cost inflation will slow
- Subsea market stability slows inflation further
- Bigger price hikes to come for marine installation
- Softening inflation for the facilities sector despite peak demand
Tables and charts
This report includes the following images and tables:
- OCTG cost trends
- Tier 1 marine contractor – EBIDA margin trend
What's included
This report contains:
