The strong oil price has buoyed confidence in the floating production markets, unfolding a new super cycle, prompting assets owners to sanction projects to capture the high crude price and lock in lower supply chain costs.

However, as activities have picked up, fabrications yards are becoming increasingly squeezed under the heavy workload, leaving limited capacity for additional orders.

The current situation is similar to what happened during 2006-2008 period, when oil jumped to $80-$120 per barrel, which doubled upstream capital cost, David Boggs, managing director of consultancy Energy Maritime Associates (EMA), told a webinar on the Brazilian FPSO market this week.