Westwood forecasts global offshore oil and gas field development CAPEX to reach $137 billion in 2026, a 30% increase from $105.2 billion in 2025.
The firm recorded 38 offshore field final investment decisions (FIDs) in the first half of 2026. The number of FIDs was 90% higher than in the same period of 2025, while committed offshore field development CAPEX reached $66.4 billion, more than three times the year-earlier level.
A further $70.5 billion of offshore oil and gas field development CAPEX is forecast for the second half of 2026. This would result in a more even distribution of investment during the year, compared with 2025 when 80% of annual committed investment was concentrated in the second half.
Floating production system (FPS) EPC awards totaled approximately $12.9 billion across eight units in the first half, while subsea EPC awards reached $5.6 billion. More than $30 billion of additional FPS and subsea EPC awards are expected in the second half.
Latin America is forecast to account for $28.5 billion of offshore investment in 2026, followed by Asia and North America at $26 billion each. Africa is expected to contribute $23.3 billion and the Middle East $22.8 billion.
This compares with 2025, when the Middle East accounted for $34.8 billion, followed by Latin America with $23.5 billion and Asia with $16.6 billion.
By segment, floating platform EPC award value is forecast to increase from $15.6 billion in 2025 to $37.7 billion in 2026. Drilling and completion expenditure is expected to decline from $26.7 billion to $23.5 billion, while fixed platform EPC falls from $14.9 billion to $13.8 billion. Subsea equipment EPC is forecast at $17 billion.
Six major FPS EPC contracts worth approximately $11.4 billion were awarded in the second quarter of 2026. These included Petrobras‘ P-81 and P-87 FPSOs, which were awarded to SBM Offshore under a build, operate and transfer model.
Other second-quarter awards covered Delfin FLNG in the US Gulf, Azule Energy‘s Greater PAJ development offshore Angola, PTTEP‘s Kikeh replacement FPSO offshore Malaysia and Eni‘s Cronos floating control unit offshore Cyprus.
Another 10 FPS units with an estimated EPC value of approximately $23.5 billion are forecast for sanction in the second half of 2026.
In July 2026, Eni sanctioned the FPS unit for the Baleine Ph. 3 development offshore Ivory Coast, with Wison New Energies responsible for the EPC scope. In Indonesia, Searah, the Eni–Petronas joint venture, awarded Saipem the EPC scope for the Bahtera Haluan Lestari FPSO for deployment in the Kutei North Basin.
Subsea EPC awards totaled $2.9 billion in the second quarter, rising 7% quarter on quarter and 24% year on year. Westwood forecasts full-year subsea EPC awards of $17 billion, with demand for 283 subsea trees. Of these, 123 units were awarded in the first half.
Demand for subsea umbilicals, risers and flowlines (SURF) is forecast at approximately 4,000 km in 2026, up 32% year on year. Export line demand is estimated at 2,600 km, representing a 47% year-on-year increase.
