Report: 103 to 130 Floating Production Systems Over Next 5 Years

Monday, March 13, 2006
A new study by IMA calls for a major ramp up in orders for floating production systems over the next five years. The 125 page report issued in March provides a detailed forecast of the number of FPSOs, TLPs, Semis, Spars and FSOs needed through 2010 to satisfy increasing development of deepwater fields. The capital expenditure associated with these orders is also forecast.

Current Inventory — There are now 179 floating production systems in operation worldwide. The figure has grown 203% over the past ten years. FPSO vessels comprise 61 percent of the current total, production semis 21 percent, tension leg platforms 10 percent and production spars 8 percent. Another 82 floating storage vessels (without production capability) are now operating, 4 of which are used for LPG storage.

Order Backlog — Currrent order backlog is the highest since we began tracking orders in 1996. There are 46 floating production units now on order, consisting of 32 FPSOs, 3 TLPs, 6 production semis, 2 production spars and 3 production barges. In addition, 7 floating storage units and 3 jack-up MOPUs are being built or converted. More than 30 facilities worldwide are presently involved in fabricating floating production units, which is the greatest number of players we have seen in the past ten years.

Underlying Market Drivers — The underlying market conditions are very strong. Global demand for oil is growing at a 2.1% annual rate. Energy supply remains tight, with downside risk of supply interruptions the prominent concern. The futures market is forecasting crude prices in the $60+/bbl area and natural gas in the $8-9/MMbtu range at the end of the decade. Most oil companies are planning to significantly increase capex budgets for E&P activity over the next several years. Rig utilization is extremely high, pushing 100% in some areas. Rig rates are going through the roof as field operators try to secure equipment for exploration and development drilling.

Near Term Projects Being Planned — We have identified 97 projects currently in the bidding, design or planning stage that potentially require floating production or storage systems. These are essentially projects off West Africa, Brazil, Southeast Asia, China, Northern Europe and in the Gulf of Mexico that appear likely to move to development over the next two or three years. If all materialize, they would generate a requirement for 91 additional production floaters and at least 8 floating storage units.

Redeployments to Grow —Many current fields will reach end of life over the next five years and the production units will be available for reuse. Of the 109 FPSOs in service, 55 have been on field for more than five years and of the 52 leased units, 30 have firm contracts with end date by 2010.

Redeployed FPSOs or production semis have been used to start up about 50 fields over the past 30 years, accounting for around 18% of field start-ups during this period. Our analysis indicates that redeployments will satisfy 25 to 30% of new floater developments over the next five years. Long Term Outlook for Equipment Orders —

We see orders for 103 to 130 production floaters over the next five years. This figure includes 75 to 95 additional units that will be purpose-built or converted from existing hulls and 28 to 35 redeployments of existing units. These orders are expected to generate capital expenditures of $35 to 44 billion over the five year period. In addition, orders for 25 to 35 FSOs will generate another $1.5 billion in conversion/construction capex.

For further information please visit our website www.imastudies.com

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

BOEM Extends O&G Lease Comment Period

The Bureau of Ocean Energy Management (BOEM) is extending the public comment period for the Request for Information (RFI) and Comments on the Preparation of the

Total E&P is First to Use FROG-XT4

Total E&P is the first to use Reflex Marine’s newly developed FROG-XT4 on the Odudu field in Nigeria. The French operator purchased the crew transfer device

New Standard gets Revised Program for Cooper Basin Approved

New Standard Energy Limited (New Standard) advises that it has received approval for amendments to its five year work program in PEL570 in the Cooper Basin. As part of the revised program,

Ship Sales

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

Private Equity Drives New Ship Buys

Ship Registries are an excellent bellwether of industry health and trends, and when Maritime Reporter & Engineering News sought answers to some topical questions,

SFL Announces Sale of Three Older VLCCs

Ship Finance International Limited (SFL) announced that it has agreed to sell the 1999 built VLCCs Front Opalia, Front Comanche and Front Commerce to an unrelated third party.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1139 sec (9 req/sec)