Global Floating Production Spend To See Huge Growth

Thursday, October 13, 2011

Latin America will account for half of the projected floating production Capex over the next five years according to a new Douglas-Westwood report. DW director Steve Robertson commented, “The dominance of this region is largely due to local Brazilian operators Petrobras and OGX plans to massively increase
their fleets of floating production systems. A key driver is Petrobras’s multi-FPS developments in its pre-salt fields in the Campos and Santos basins. We forecast that Latin American Capex for the 2012-2016 period will total $34bn, with 50 FPS deployments, a huge growth on the $12.5bn spent during the previous five-years.”
Douglas-Westwood’s latest edition of the World Floating Production Market Forecast details the considerable opportunities in the sector, examines the commercial, economic and geographical factors of influence and forecasts a  total of 134 installations over the 2012-2016 period, representing a global Capex of $68bn.
“The deepwater basins off West Africa, Brazil and in the US Gulf of Mexico have become established as the focus areas for FPS developments. Africa is the second most important region, although only accounting for 18% of forecast spend, compared to 50% for Latin America. Like Latin America, a large proportion of the African installations will take place in deepwater. North American spend from 2012-2016 is muted, with less activity forecast than for Asia or Western Europe,” he said.
“Douglas-Westwood’s forecast of total global installations represent a 37% increase on the 2007-2011 period (when there were 98) and a corresponding increase of 81% in expenditure,” noted Lucy Miller, the lead author of the report. “The disparity between the two percentages is a reflection of factors such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content raising the cost of relevant equipment and services and cost inflation.
“FPSOs will continue to dominate the sector, with 81% of forecast global FPS spend. For the first time, our forecasts include a breakdown of FPS by component and associated spend. Expenditure on the hull is a considerable proportion of Capex – on average 25% of an FPSO and around 35% for other FPS types.
”The bottom line is that sector is set for massive growth,” she concluded.

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


Towering Damen Marine Components Hits 150‏

Damen Marine Components (DMC), the oldest company in Damen Shipyards Group, celebrates its 150th anniversary today. DMC has grown from a very small shipyard established in Gorinchem in 1865,

Azerbaijan to Get New Passenger Vessel This Year-end

Azerbaijan Caspian Shipping Company  expects to get the first of the three passenger vessels being built currently at the Baku Shipbuilding & Repair Plant (Baku Shipyard LLC) until the end of 2015,

Michelle Obama to Christen Navy's Newest Submarine

U.S. First Lady Michelle Obama will join builder General Dynamics Electric Boat, a wholly owned subsidiary of General Dynamics, in christening Illinois (SSN-786), the U.


MacGregor's Deck Machinery for Sentinel Marine ERRV

MacGregor, part of Cargotec, will supply deck machinery for a new 65m emergency rescue & response vessel (ERRV) for Sentinel Marine. The ship has been designed

Kruszewski Joins Braemar Engineering

Braemar Engineering, the specialist maritime engineering consultancy, today announced the appointment of Chis Kruszewski to the role of Senior Electrical Engineer in its Offshore,

RigNet Partners Inmarsat to Offer Fleet Xpress

RigNet, Inc., a global provider of remote managed offshore communications solutions, telecoms systems integration services and collaborative applications to the oil and gas industry,

Maritime Contracts Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.1193 sec (8 req/sec)