The downturn in the offshore oil & gas industry, due to a decline in crude oil price in the past, has affected the markets worldwide, including South America. The demand for offshore helicopters is expected to record slow growth in South America, over a short term. However, with stable political situation and emerging offshore field development in Guyana, the offshore helicopters market is expected to register significant growth in the long run. Moreover, the increasing expenditure for the offshore oil & gas exploration & production (E&P) activities, coupled with increasing political stability across the region, especially in Venezuela and Brazil, is expected to drive the offshore helicopters services market during the forecast period.
Efforts are being put in, to promote the offshore oil & gas exploration activities in the region, in order to increase the national revenues.
Argentina is planning to announce bidding process for three offshore basins, from July through November 2018. The exploration rights for blocks on offer include 130,000-square km Argentina Basin, 90,000-square km Malvinas West Basin, and 5,000 square kilometers in the Austral Basin. The Colombian government, which was primarily focused on onshore reserves, is now undertaking certain legislative changes, to promote offshore E&P activities during the forecast period.
The South American offshore oil industry is cash-intensive and has inadequate availability of E&P equipment and skilled labor. Investment is relatively risky, which is likely to have ripple effects on the offshore helicopter services industry. In addition, the high maintenance costs of helicopters implies very less profit margins for the service providers.
Brazil and Argentina dominate the South American offshore helicopter services market. However, changing government policies that encourage offshore E&P activities and rebounding of oil prices to a sustainable level are anticipated to attract other countries into the market, during the forecast period.
Increasing E&P Activities to Provide Significant Opportunities for Growth in Brazil and Guyana
The Brazilian and Guyanese governments have made significant changes in the regulations pertaining to the oil & gas industry. For instance, Brazil removed the requirement that Petrobras should have 30% participation on all exploratory blocks and the requirement that Petrobras should be the operator of all the pre-salt blocks. In addition, the Brazilian government approved the next round of licensing new exploration blocks. These changes are likely to attract foreign companies into the offshore oil & gas industry in these countries, thereby recovering the demand for offshore helicopters.
On 27th September 2017, the 14th Round of Brazilian oil & gas licensing took place, in which, a total of 287 exploration blocks were auctioned across nine basins. The increasing exploration activity in Brazilian waters is expected to improve the regional offshore helicopter market.
In October 2017, ExxonMobil recorded its fifth new oil discovery, after drilling Turbot-1 well offshore Guyana. Turbot adds to ExxonMobil’s previous discoveries at Liza, Payara, and Liza deep wells in the Stabroek Block. ExxonMobil’s proactive exploitation of offshore fields in Guyana has created a new market for offshore helicopter service. The company’s regional drilling operation is supported by three to four helicopters. The development of Guyana’s offshore oil & gas industry in the near future is expected to drive the demand for offshore helicopter services.
Major Players: Bristow Group Inc., CHC Group Ltd, Era Group Inc., PHI Inc., Omni Taxi Aéreo SA, Airbus Group SE, Leonardo SpA, Textron Inc., Lockheed Martin Corporation, Russian Helicopters, and JSC, among others.
Reasons to Purchase this Report
- Current and future South American offshore helicopters market outlook in the developed and emerging markets.
- Analyzing various perspectives of the market, with the help of Porter’s five forces analysis.
- The segment that is expected to dominate the market.
- The countries that are expected to witness the fastest growth during the forecast period.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
3.4 Government Policies and Regulations
4. Market Dynamics
5. Industry Attractiveness - Porter’s Five Forces Analysis
5.1 Bargaining Power of Suppliers
5.2 Bargaining Power of Consumers
5.3 Threat of New Entrants
5.4 Threat of Substitutes
5.5 Intensity of Competitive Rivalry
6. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
6.1 By Type
6.1.2 Medium and Heavy
7. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.3 Rest of South America
8. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
8.1 Service Providers
8.1.1 Bristow Group Inc.
8.1.2 CHC Group Ltd
8.1.3 Era Group Inc.
8.1.4 PHI Inc.
8.1.5 Omni Taxi Aéreo SA
8.2.1 Airbus Group SE
8.2.2 Leonardo SpA
8.2.3 Textron Inc.
8.2.4 Lockheed Martin Corporation
8.2.5 Russian Helicopters JSC
9. Competitive Landscape
9.1 Mergers & Acquisitions
9.2 Joint Ventures, Collaborations, and Agreements
9.3 Market Share Analysis
9.4 Strategies Adopted by Leading Players
*List not Exhaustive
**Subject to availability on the public domain