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

Contracts

DryShips Sells Six Aframax Tankers

Dry bulk and petroleum cargo shipper DryShips Inc., through its majority owned subsidiary, Ocean Rig UDW Inc. of offshore contract drilling oil services, announced

Tero Marine Secures Boa Offshore Contract

Tero Marine informs it has secured a multimillion (NOK) contract for delivery of fleet management software to Norwegian shipping company Boa Offshore. The Bergen-based

Activists Planning Protest Against Shell's Arctic Business

U.S. environmental activists said they planned to protest on Tuesday against the launch of the second of two oil rigs central to Shell's plans to drill for oil in the Arctic.

Shipbuilding

Sanamar Launches 3 Tugs from New Yard

Sanmar’s new custom-built, general purpose shipyard at Altinova, Turkey, has launched three 60-metric-ton bollard pull tugs on the same day, less than five months since work first started at the yard.

Evergreen Names Penultimate L-type Containership

A naming ceremony was held for the Evergreen Group’s newest containership, Ever Lovely, the ninth of its L-type vessels to be built by CSBC Corporation in Taiwan

Technip Wins Jurong's FPSO Conversion Contract

Technip has been awarded a topsides detailed engineering and procurement services contract by Jurong Shipyard Pte Ltd. The project is part of the conversion of a shuttle tanker into a floating,

Offshore

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

Teekay Sells FPSO, Announces Dividend Boost

Teekay Corporation to complete sale of the Knarr FPSO and announces dividend increase of 75 percent   Teekay Corporation announced today that its board of directors

People in the News

Dittmann Named Chairman of SEA Europe

Kjeld Dittmann, the Managing Director of Lyngsø Marine A/S, is the new Chairman of the European Ships and Maritime Equipment Association (SEA Europe).    He succeeds Govert Hamers,

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

‘Old Salt’ Designation Passed to Vice Adm. Tidd

The “Old Salt” designation, honoring the Surface Warfare Officer (SWO) serving on active duty with the earliest Surface Warfare Qualification, passed from Adm. Sam Locklear to Vice Adm.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Salvage Ship Electronics Ship Repair 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: 0.3022 sec (3 req/sec)