Floating Production Systems: Market Update

By Jim McCaul, International Maritime Associates
Monday, December 16, 2013
Petrobras’ P-55 FPU in Rio Grande, Brazil, where it was built to BV class.

Currently, 319 oil/gas floating production units are now in service, on order or being remarketed for reuse.  FPSOs account for 66% of the existing systems, 73% of systems on order. Another 25 floating LNG processing systems are in service or on order.  Liquefaction floaters account for 16%, regasification floaters 84%.  No liquefaction units are yet in service – all 4 are on order. In addition, 102 floating storage units are in service, on order or available. (See table right)

Growing Number of Available Units

Sixteen production floaters (13 FPSOs, 3 Semis) are off field and being remarketed for redeployment.  Another FPSO and an FSRU on order do not yet have a field contract – and a new FPSO just delivered to Brazil (OSX3) could come on the re-sale market as the field operator (OSG) has financially collapsed.

Trend in Inventory

The inventory of oil/gas floating production units is 15% greater than five years ago and 66% higher than ten years back.  This comparison includes all units in service, on order and off field – but excludes LNG processing units.  If the latter are included, the growth is 21% and 79% respectively. 

Orders to Date in 2013

Since the beginning of the year there have been orders for 24 production floaters with a total contract value of ~$19 billion.  The orders include 11 FPSOs, 2 TLPs, 1 Spar, 2 Barges (1 oil/gas, 1 LNG), 7 FSRUs and 1 MOPU.  Details for orders to date in 2013 are available at www.imastudies.com.
The pace of production floater orders thus far this year has been running above the long term average.  Over the past 15 years orders have averaged 1.2 units per month.  The order intake pace this year has been averaging 2.4 units per month.
But the market could be hitting resistance.  FPSO orders in particular have been relatively weak.  Over the past five years an average of 15 FPSOs have been ordered annually.  At the moment it looks like this year will not reach this level of orders. 
Backlog of planned floater projects – 218 floating production projects are in various stages of planning as of beginning November.  As shown below, close to 60% entail use of an FPSO. 

Where Planned Projects are Located

Brazil is the major location where future floating production projects are in the planning stage.  22% of visible planned projects are located in Brazil. Several Brazilian projects will require multiple production units.  Libra could require 12 production units, Jupiter 6 units, Lula 2+ units.  When these large projects are taken into account, Brazil represents almost 30% of visible floating production system orders in the planning stage. A breakdown of planned floating production projects by location is below.

Location of Floating
Production Projects

in the Planning Stage
(as of 1 November 2013)

Project Location    # of Projects

Brazil    49
Africa    48
SE Asia    34
No. Europe    20
GOM    18
Aust/NZ    15
Med    11
SW Asia    12
Other    11
Total    218

 


About IMA & Jim McCaul

IMA provides market analysis and strategic planning advice in the marine and offshore sectors. Over 40 years we have performed more than 350 business consulting assignments for 170+ clients in 40+ countries. We have assisted numerous shipbuilders, ship repair yards and manufacturers in forming a a plan of action to penetrate the offshore market.  Our assignments have included advice on acquiring an FPSO contractor, forming an alliance to bid for large FPSO contracts, satisfying local content requirements and targeting unmet requirements through technology development.
Tel: 1 202 333 8501
e: imaassoc@msn.com
www.imastudies.com


(As published in the November 2013 edition of Maritime Reporter & Engineering News - www.marinelink.com)

  •  Jim McCaul

    Jim McCaul


Contracts

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Shipbuilding

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Michelle Obama Sponsors Attack Submarine

General Dynamics Electric Boat has delivered to the U.S. Navy an attack submarine that is sponsored by first lady Michelle Obama and will be named for her home state, reports AP.

Croatia’s Jadrolinija to Buy New Passenger Ship

Croatia’s  largest national passenger shipping company Jadrolinija plans to expand its fleet with a new passenger ship, with the total cost of about 50 million euros, reports Poslovni.

Offshore

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Onshore Spending on the Cusp of Recovery?

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

People in the News

Michelle Obama Sponsors Attack Submarine

General Dynamics Electric Boat has delivered to the U.S. Navy an attack submarine that is sponsored by first lady Michelle Obama and will be named for her home state, reports AP.

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Zumaia Offshore Acqires MPP Workboat Aitana B

In April 2016 Zumaia Offshore, S.L., leading workboat owner and operator based in the Basque Country, took delivery of the Cummins-powered MPP workboat “Aitana

 
 
Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority 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: 0.1208 sec (8 req/sec)