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SUBSEA: Subsea is about creating facilities and systems that produce oil and gas from underwater reservoirs. It is an efficient way of producing oil and gas from deeper sea water. The sub sea processing incude of pumping, compression, separation, mixing, dehydration, raw seawater injection. The oil from deep water levels it is not easy to extract oil as due to backward pressures from water depth unless we implement subsea processing. The benefits that are achieved by subsea processing
1. The impact of the environment can be reduces.
2. The flow of pattern is increased enhanced.
3. The fields in the areas of production are improved.
4. Deeper extractions and marginal fields are developed. 
SUBSEA TECHNOLOGY: Subsea technology comprises well head and related production infrastructure placed on the seafloor, rather than on a conventional surface platform. The first trail of subsea technology was implemented in 1970 to extract oils from the deep water levels and this made them easy and more convenient process to extract oils using subsea processing. In the year 1974 they implemented Gas-Liquid Separation and boosting trails to extract oils, Gas is separated by means of an inlet cyclone and remixed later with the oil, before boosting. The temporary gas removal enables the use of a smaller separator vessel and facilitates the oil/water separation with the help some booting systems which is an advance is used for extracting the oil and upto 1980's they followed these subsea processing for oil extraction. In 1985 they modified and introduced First Diverless Subsea X-mas Tree and Production System for extraction . In 1987 they implemented First Subsea slug catcher came into the market and this made them more efficient to extract deeper oil wells. In 1989 BOET subsea testing separation was introduced with the help of some testing equipment and processing the oils from deeper wells are extracted more. In 1993 they introduced First Subsea Multiphase pumps like hydraulic and electrical multiphase pumps with the help of those the pumps are sent to the deeper sea beds to extract oils. In 2000 the First Subsea Pilot separation and water injection system was implemented and in 2001 they implemented the advanced subsea technology and introduced First Subsea Gas-liquid Separation and Boosting Pilot 
Subsea technologies implemented in the past 
At present due to the various technologies and more advanced equipments the subsea technologies are improved more in advance for the deeper oil extractions. In 2007 they introduced First Commercial subsea separation and boosting and injection systems and recently in 2008 First subsea pilot compression and power distribution system are implemented with the help of some hydraulic compressors and power distribution the pumps are send deeper to sea beds and extracted oils. In 2011 First commercial and subsea compression system was introduced compression is another process on the technology frontier, although somewhat farther in the future than the gas/liquid separation and boosting programs under development. In the year 2013 First commercial subsea compressor and power distributed system was introduced in the present world for extracting oils and this is more advanced and more efficient ways in the market for extraction of deeper oils well.
Present and future technologies of subsea.
1. Oil is extracted from deep water of depth 2500m to 5000m
2. Present tie back distance exceed 100km.
3. Subsea processing technologies.
Multiphase pumping technology
Sulzer pumps are founded in 1843 located in Switzerland. Sulzer pumps is a global leader in the development and supply of centrifugal pumps, and proud of its unrelenting focus on operational and technical excellence, as well as its close relationship with customers all over the world. Sulzer Pumps provides resourceful products and services that can satisfy customer needs in motor pumping. Their manufacturing facilities are located on all continents with sales offices, service centres and representatives around the world. They mainly concentrate on the research and development department. They offer business partners in the Oil & Gas Industries, Power Generation Plants, operators of Pulp & Paper mills ,Water Treatment & Distribution, Food, Metals and Fertilizer businesses.
With the implementation of subsea systems are introduced for the extraction of oil. So Sulzer introduced subsea pumps and systems to extract oil from deep sea levels, by doing to they can achieve the goal of spreading their product in the markets all over the world to increase their profits and can gain new onshore and offshore oil and gas industries by producing the pumps. There is an enormous increase in the oil and gas industries sectors so there will be demand and increase in oil and gas. In some periods there may be in fluctuation due to decrease or increase in demand but there will always an over all demand in the world and this leads to increase of equipments for oil extraction.
COMPETITORS OF SULZER SUBSEA PUMPS:
There are so many competitors for sulzer subsea pumps, the two major competitors are:
1. FRAMO ENGINEERING AS
2. GE OIL and GAS
1. FRAMO ENGINEERING AS: The company is started in 1994 and it is the present market leader in subsea pumps. The company manufactures engineering products for the oil and gas industry including subsea and multiphase pumps systems Framo has collaborated closely with major oil companies in developing products that can meet the economic and technological challenges of the offshore sector. It has huge investments in R & D and has number of successful installations. Framo engineering had signed an agreement to develop helico-axial multiphase pump systems. It manufactures wide range of products like
Subsea Water Injection Pumps
Multiport Selector Manifolds
Wet Gas Compressors
Subsea Electric Power Distribution
2.GE OIL and GAS: It is the leading business in the world in supplying of technology for the entire oil and gas industries from drilling, transportation, processing petrochemicals refining and plastics. The company has development of 20 successful subsea system EPC packages which are successfully installed around the world, it operates in 70 countries in the world and has 25years of experience. It possesses high quality and reliable systems for present day challenges.
MAJOR CUSTOMERS IN OIL AND GAS SECTOR:
Sulzer is the major leading company in the manufacturing of subsea pumps in the oil and gas sectors. There are so many other customers like Chevron, British Petroleum, Shell, Exxon Mobil, Total, Suncor, Conoco Philips, Reliance etc all these companies are extracting oils from deeper wells and they use these pumps for the extraction. If the sulzer produces subsea pumps and having contact with all these customers then they can develop their business through profits in the market and by producing subsea pumps according to the customers' satisfaction.
Segmentation is a division based on customer demand. The figure below is the oil and gas production regions segmented based on three categories. They are mature, new and future offshore regions. In mature offshore region countries like Gulf of Mexico, United States, Norway, Brazil, United Kingdom and some countries in Africa are well established with the use of oil and gas subsea pumps. Countries like India, Australia, Japan, some countries in Africa and Island countries around Mexico comes under new offshore regions. In future offshore regions countries like Denmark, some part of Russia
Figure World offshore Oil and Gas Production Regions
Mature Offshore Regions:
Gulf of Mexico: It comes under mature offshore region. In the figure the forecasts of the production of oil and gas are mentioned up to 2018 and it is clearly evident that the oil and gas production has potential in Gulf of Mexico.
Gulf of Mexico Average Oil Annual Rates (Thousand Barrels/Day)
Gulf of Mexico Average Annual Oil Production
Offshore Oil Wells in Gulf of Mexico
Gulf of Mexico Average Annual Gas Rates ( Billion Cubic Feet/ Day)
Gulf of Mexico Average Annual Gas Production
The following graphs show the production and consumption of oil and gas in Brazil. In 2008 the natural gas consumption is 820 billion cubic feet/day and for oil the consumption and production are more or less same.
Brazil Natural Gas Production and Consumption
Brazil Oil Production and Consumption
United Kingdom: The following graphs provides an information about the well available in United Kingdom and oil and gas production and consumption. For oil sector the consumption is more or less same and for natural gas sector the production is considerable high than that of consumption so it become available in the present mature offshore region.
Offshore Oil Wells in United Kingdom
UK Oil Production and Consumption
UK Natural Gas Production and Consumption
New offshore regions: The graphs below shows the oil and gas production and consumption rate during the years 1988- 2008. In the current graphs as the consumption rate is higher than that of the production rate import of both oil and gas is taking place so with the introduction of new subsea technology the importing can be reduced and can provide a better profits .so as it is now developing it comes under new offshore region.
Australia's Oil Production and Consumption
Australia's Natural Gas Production and Consumption
India: The graph below shows the oil and gas production and consumption in India. In the oil sector the consumption is higher than that of the production so importing is taking place so in order to avoid this new subsea system should be introduced. But for natural gas consumption rate and production rate are same.
India's Oil Production and Consumption
India's Natural Gas Production and Consumption 
Targeting: It is mainly based on the segmentation and depending on the regions.
Mature offshore regions (Segment 1): This segment is very well developed. It is very useful for short term investment.
New offshore regions (Segment 2): This segment contains the regions that are still developing. It is useful for midterm investment.
Future offshore regions (Segment 3): This segment contains the regions that are not yet developed. It is useful for long term investment.
Mature offshore regions: As Sulzer pumps have few competitors for this subsea pumps, their product will face severe competition in mature markets.
New offshore regions: Less competition. So product positioning will be good.
Future offshore regions: No competition. Try to be first in this market.
Future Potential Demand:
According to SUT subsea technical conference, 1 trillion dollars need to be invested annually at least up to 2030.
Access to difficult reserves.
It is given that,
Direct material cost = £ 580,000
Direct labour cost = £ 850,000
Overhead = 100 % of Direct labour cost
Profit = 15%
Discount rate = 10% per annum
Sales is 9 units in 2011 and 2012, and there after sales increases 3 units every year.
In the following table, the formulae used are
Cost per unit = Direct material cost + Direct Labour cost + Overhead cost
Total price = Cost per unit + Profit
Direct Material Cost
Direct Labour Cost
In the following table, the formulae used are,
Total revenue = Total price per unit * Number of units sold
Total cost = Cost per unit * Number of units sold
Present Value = Total Cash flow * Discount factor
Discount Factor (10%)
Net Present Value
Adapt to latest technologies according to market trends.
Project time should be reduced.
Attract customers by maintaining the same quality standards and reliability.
Present market is not so attractive as results suggest decline of 0.8% in oil consumption and a marginal growth in natural gas consumption in 2008.
Future market will be encouraging.
Financial calculations it is clearly noticed that the company gained the profits in the 3rd year. The profits margins will be higher than of the expected values if the subsea pumps are manufactured according to customers orders. So, it is good for the company to proceed with the project
The subsea market segment is the leading sector and could be adequate to maintain its importance for pump manufacturers. From the market perspective there will be competition from pump manufacturers for market share .So Sulzer would need to particularly target the customer segments with higher potentials with differentiating strategy. The company is financially good and gains profits in the future .