Floating Production Expenditure set to Double

press release
Thursday, October 04, 2012

Latin America to account for 29% of installations 2013-2017; FPSOs remain by far the largest segment of the market; Deepwater driving growth, with FPS supply affected by financing, leasing and local content.
 
DW forecast that between 2013 and 2017 $91bn will be spent on floating production systems (FPS) – an increase of 100% over the preceding five-year period. In Douglas-Westwood’s new World Floating Production Market Forecast 2013-2017, a total of 121 floating production units are forecast - a 37% increase.
 
This growth is driven by multiple factors, such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content resulting in increased costs and general offshore industry cost inflation.
 
Report author, Hannah Lewendon, commented, “Floating Production is firmly established as a cost-effective method of developing oil and gas fields around the world. In water depths beyond 500m floating production systems becomes one of the few options open to operators, an increasingly important factor as production moves into these areas. DW forecast that 63% of global FPS market spend will be in deep waters.
 
“Latin America accounts for 29% of the 121 installations forecast and 37% of the projected Capex. Most installations to date have been in Petrobras-operated fields off Brazil and this trend is likely to continue, although substantial delays are expected for Petrobras’ offshore E&P investment. Asia, then Africa and Western Europe make up much of the remaining forecast Capex.
 
“FPSOs represent by far the largest segment of the market both in numbers (94 installations) and forecast Capex (80%) over the 2013-2017 period. FPSSs account for the second largest segment of Capex, followed by TLPs, then spars.
 
Steve Robertson, Director, concluded, “Overall, the outlook is considered positive and the value of annual installations is projected to grow from $10.2bn in 2013 to $26.2bn in 2017. Three main factors will affect the supply of units in the FPS sector; financing, local content and leasing. The FPSO leasing sector remains weak with 85% utilisation at present compared to 89% at the time of the 2011 edition of the report. Contractors are reporting poor returns on existing projects and write-downs on new projects due to cost over-runs. Financing remains a challenge for leasing contractors and smaller E&P companies as a result of the debt crisis in Europe. At the same time local content requirements are pushing up prices and extending lead times, particularly in Brazil.”
 
 
About the report: Now in its 11th edition, this highly regarded and established report has been tracking and analysing the industry for over a decade. Douglas-Westwood’s market analysis, commentary and understanding of the sector are strengthened by extensive insight gained from strategy and consultancy work undertaken for major companies throughout the industry.
 
The World Floating Production Market Forecast 2013-2017 contains analysis of Capex, broken down by various components including hull, topside modules and mooring systems. It presents analysis based on unique and proprietary data, comprehensive region-by-region analysis, historic and forecast activity from 2008 to 2017, segmentation by region & FPS type, order year analysis and a deepwater focus. For more information on the report visit:
 
For more information on the report visit:


http://www.douglas-westwood.com/shop/shop-infopage.php?longref=1048

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

New CEO for Evergas

Evergas has appointed Steffen Jacobsen as CEO of the company as of 8 May 2015 Mr. Jacobsen joined Evergas 1 February 2015 as Vice President, Fleet after almost 35 years in Maersk.

Icebreakers Ordered for Neft’s Novy Port Project

Aker Arctic’s icebreaker design selected for Gazprom Neft’s Novy Port project   Aker Arctic and Vyborg Shipyard have confirmed a contract for the design of two

MacGregor's Pusnes bow loading systems for Suezmax Tankers

MacGregor, part of Cargotec, has secured contracts to supply Pusnes bow loading systems for three newbuild shuttle tankers intended for operations in Brazilian waters.

News

New CEO for Evergas

Evergas has appointed Steffen Jacobsen as CEO of the company as of 8 May 2015 Mr. Jacobsen joined Evergas 1 February 2015 as Vice President, Fleet after almost 35 years in Maersk.

NCSP Group Cargo Traffic Up 6% in Q1 2015

Novorossiysk Commercial Sea Port Group (NCSP Group or the Group) (LSE: NCSP, Moscow Exchange: NMTP) reports that Group’s consolidated cargo turnover in Q1 2015 increased by 2 million tonnes or 6.

Naming Ceremony of Evergreen's EVER LYRIC

Evergreen Group today held the naming ceremony for EVER LYRIC, the eighth of its L-type vessels built by CSBC Corporation in Taiwan. The ceremony took place

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1958 sec (5 req/sec)