At a glance, it appears that the economics of FPSO redeployment are starting to make sense. While vessel availability and other variables have sparked renewed interest in this corner of the market it’s important to remember that, at the end of the day, dollars and cents are only part of the equation.
Each field has its own unique set of characteristics and technical requirements, which is why, generally speaking, FPSOs are built on a bespoke basis and often need to be modified prior to redeployment. Vessel modification can be a complicated, time-consuming endeavor that must be handled with care.
“Redeployment of an FPSO is not as straight forward as having the cheapest option for an oil company to produce their field,” says Bumi Armada. “It is a ‘jigsaw’ of matching the right FPSO with the right client, field, economics and returns for all parties. There are a few opportunities, but it is about finding the right fit for a given FPSO.”
The Malaysian company has successfully redeployed tonnage in the past and notes that it’s open to doing so again.
You’ll find more commentary from Bumi Armada and other market leaders, like Yinson and Total, in a new eBook entitled Why Redeployment is Making Waves in the FPSO Industry.
- Key characteristics of successful redeployments
- Updates about recent activity in the redeployment market
- Insight from industry leaders about changing economics, overcoming challenges and balancing field development expectations and concessions