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

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Asia Dry Bulk-Capesize Rates Under Pressure

Capesize rates fall in a quiet market as holidays weigh; 20 charter-free capesize ships could add to downward trend. Freight rates for large capesize dry cargo

Egypt to receive first LNG shipment from Rosneft in May

Egypt will receive the first of five agreed shipments of liquefied natural gas (LNG) from Russia's Rosneft this month, an official at the state gas board EGAS told Reuters on Thursday.

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

Shipbuilding

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

Massive Layoff Ahead for Hyundai Heavy

Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources.

Daewoo Shipyard Posts Q1 Operating Loss

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. posted a first-quarter loss after incurring more costs to finish some offshore projects.   First-quarter

Offshore

Transocean Posts Quarterly Profit on Cost Cutting

Offshore rig contractor Transocean Ltd posted a quarterly profit, compared with a year-earlier loss, as cost cutting helped counter a slump in crude oil prices.

Skandi Paraty Delivered and On-hire

Skandi Paraty, owned by Norskan Offshore Ltda, has been delivered from the yard and went on-hire on a four years contract with Petrobras.   Skandi Paraty is an AHTS,

ABB Transformers for the Most Powerful Wind Turbines

ABB will deploy 40 special transformers to equip wind turbines for an offshore wind farm in the Irish Sea. The MHI Vestas Offshore Wind turbines are 195 m (640

People in the News

Mariner Rescued after 2 Months at Sea

A 29-year-old man arrived in good condition to Honolulu Wednesday aboard a Coast Guard small boat after being rescued by merchant mariners in the Southeastern Pacific

ICS Pushing For Balanced Update of York Antwerp Rules

At the Comité Maritime International (CMI) Conference, in New York this week, the International Chamber of Shipping (ICS) will be pressing to ensure that the proposed

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction 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: 0.1201 sec (8 req/sec)