Offshore costs outlook H1 2025: inflation continues to ease

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.