The floating, production, storage and offloading vessel market is well placed to capitalise on the rising tide of activity in the offshore oil and gas segment over the next few years, with some projecting global revenues in excess of $30 billion by 2025.
Growth, which may begin by as early as this year, follows a concerted effort by FPSO operators to trim project costs, raise productivity and reduce operating overhead. The result: improved breakeven levels for many of the projects that are now in the pipeline. Of these, forecasters believe more than 30 will reach FID between 2019 and 2021.
A detailed breakdown of the current FPSO orderbook, and a regional overview of projects that are on the horizon, are the focus of new report produced by the organisers of World FPSO Congress 2019, which convenes in Singapore this September.
The report, which references data from IHS Markit and other sources, notes that South America will continue to dominate the FPSO market in 2019— and beyond—with 30 projects in the works.
“The region, in particular Brazil, will be a key driver of the FPSO market over the next five years,” the report explains, adding: “This can be demonstrated with the spending plans recently laid out by Petrobas. The oil giant plans to spend $84.1 billion between 2019-2023, with $68.8 billion spent on its exploration and production business.
“Thirteen FPSOs are planned to go into production, seven of which are still to be built (these are planned for between 2021 and 2023). IHS Markit believes that six FPSOs will be awarded for South America in 2019 with Brazil and Guyana field developments driving demand.”
To learn more about FPSO activity in Central & South America, Europe, Africa the Middle East and Asia Pacific, you can download the report in full. It’s free!
This article was produced by the content marketing team at NHST Global Publications, Upstream's publisher, on behalf of an advertiser.