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Monday, January 22, 2018

Offshore Floating Production: 40% Growth in Five Years

Maritime Activity Reports, Inc.

March 11, 2013

IMA has completed an in-depth analysis of the floating production sector – including a forecast of orders for additional floating production systems between 2013 and 2017. Highlighted below are some key findings in Floating Production Systems: assessment of the outlook for FPSOs, Semis, TLPs, Spars, FLNGs, FSRUs and FSOs.

Inventory of floating production systems now at 264 units – This figure is 25% greater than five years ago, almost 85% higher than ten years back. FPSOs account for 63% of the existing systems. The balance is comprised of production semis, tension leg platforms, production spars, production barges and floating regasification/storage units. Eight units (all FPSOs) are off field and available for reuse – resulting in an overall utilization rate of 97%. Another 102 floating storage/offloading units (without production capability) are in service.

Backlog of production floater orders at an all-time high –Current order backlog consists of 77 production floaters – 44 FPSOs, 7 production semis, 5 TLPs, 5 spars, 4 FLNGs and 12 FSRUs. Delivery of the equipment will grow the production floater inventory by 29%. In the backlog are 46 units utilizing purpose-built hulls and 31 units based on converted tanker hulls. Of the production floaters being built, 46 are owned by field operators, 31 are being supplied by leasing contractors. Brazil continues to dominate orders for production floaters – 26 units are being built for use offshore Brazil, 34% of the order backlog.

Number of planned floater projects continues to grow – 248 projects potentially requiring a floating production or storage system are now in the planning stage. A year ago, 216 projects were being planned. Five years ago, the figure was 134 projects. According to Jim McCaul, head of IMA, “the growth in number of planned projects reflects the huge increase in deepwater drill equipment over the past decade. More than 150 drillships or deepwater semis have been ordered since 2003, removing a bottleneck that constrained exploration and development in deepwater. The result has been a dramatic increase in floater projects in the planning pipeline.”

Orders for 124 to 190 production floaters forecast between 2013 and 2017 – FPSOs are expected to account for ~70 % of future production floater orders. The remaining 30% will be production semis, spars, TLPs, FLNGs and FSRUs. Around 60 % of FPSO orders will be placed by leasing contractors, 40 % by field operators. Modification and redeployment of existing FPSOs will satisfy around 20 % of future FPSO requirements.

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