Global offshore oil and gas field development investment is forecast to reach $137bn in 2026, up 30% from $105.2bn in 2025, as operators double down on long-cycle projects, according to London-based energy market research firm Westwood. Westwood recorded 38 offshore field FIDs in the first half of 2026, a 90% increase versus the first half of 2025, with total committed offshore field development capex reaching $66.4bn — more than three times the level recorded a year earlier. The firm stated that floating production systems and subsea markets strengthened materially in the second quarter, signalling a clear acceleration in offshore award momentum heading into the second half of 2026, despite geopolitical disruption and oil price volatility.
H1 award breakdown and H2 outlook
Within the $66.4bn H1 committed capex, FPS EPC awards totalled approximately $12.9bn across eight units, while subsea EPC awards reached $5.6bn. Westwood forecasts the second half of 2026 to remain in a stronger investment cycle, with $70.5bn in committed offshore oil and gas field development capex and more than $30bn of additional FPS and subsea EPC awards expected over the same period. Unlike 2025, when offshore capex was heavily weighted toward the second half — 80% of annual committed investment — 2026 is more evenly distributed between $66.4bn in H1 and $70.5bn in H2, suggesting a more sustained sanctioning environment rather than a concentrated year-end award cycle.
Regional investment mix shifts
In 2025, offshore oil and gas committed investment was led by the Middle East, supported by QatarEnergy, Saudi Aramco, and TPAO, reflecting large-scale fixed platform developments and brownfield capacity expansion. The Middle East accounted for $34.8bn, or roughly one-third of global capex. Latin America followed with $23.5bn, while Asia contributed $16.6bn. In 2026, investment is significantly more diversified: Latin America has become the largest regional market at $28.5bn, narrowly ahead of Asia and North America, each at $26bn. Africa contributes $23.3bn, while the Middle East falls to $22.8bn. The softer Middle East profile in H1 2026 reflects a more cautious sanctioning environment, partly influenced by geopolitical uncertainty linked to the US-Israel-Iran conflict, as well as the reallocation of global capital toward LNG-linked and deepwater floating developments. Major Middle East opportunities, including Durra, Maydan Mahzam and Umm Shaif Gas Cap, remain weighted toward the second half of 2026 or later.
Segment shift: floating platforms gain, drilling slips
The clearest structural shift in 2026 is the rise of floating platform EPC award value, increasing from $15.6bn in 2025 to $37.7bn in 2026. By contrast, drilling and completion spend declines from $26.7bn to $23.5bn, while fixed platform EPC also declines modestly from $14.9bn to $13.8bn, given project sanctioning delays in the Middle East. Subsea equipment EPC remains broadly stable at $17bn.
| Segment | 2025 | 2026 |
|---|---|---|
| Floating platform EPC | $15.6bn | $37.7bn |
| Drilling and completion | $26.7bn | $23.5bn |
| Fixed platform EPC | $14.9bn | $13.8bn |
| Subsea equipment EPC | $17bn | $17bn |
FPS market rebounds in Q2
Westwood noted that the FPS market rebounded strongly in the second quarter of 2026, compared with the first quarter, with six major EPC awards valued at approximately $11.4bn. These projects added more than 539,000 barrels of oil equivalent per day of processing capacity and 4.4 million tonnes per annum of FLNG capacity. Key awards included Petrobras' P-81 and P-87 FPSOs, awarded to SBM.
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