NEWS RELEASE – October 8, 2019

Energy Maritime Associates Releases Updated Floating Production Systems Report
Wave of new contract awards expected in Q4 2019

SINGAPORE – In its latest quarterly Floating Production Systems Report, Energy Maritime Associates (EMA) reviewed the market for Floating Production Systems, including:

  • 300 Production Units and 104 FSOs in Operation
  • 225 Projects in the Planning Pipeline
  • 46 Production Units, 8 FSOs and 5 MOPUs on Order
  • 49 Available Units (26 FPSOs, 7 Semis, 6 MOPUs, 4 FSRUs, 3 FSOs, 1 Barge, 1 Spar, 1 TLP)

After a strong start in the first half of the year, the pace of orders slowed down with only four announced in Q3 (1 FPSO, 1 FSRU, and 2 LNG FSOs). This brings the total number of units awarded in 2019 to thirteen: 6 FPSOs, 3 FSRUs, 2 FSOs (LNG), 1 Semi, 1 MOPU.

However, 27 projects that are likely to reach FID in the next 12 months, including many that have completed tendering and are just pending final FID/formal announcement. We expect a surge of orders before year end, particularly from Petrobras, which has five projects in the tender process. EMA expects up to six additional FPSO awards in the next three months.

The orderbooks of contractors are filling up, with leading companies taking on multiple projects. Modec and SBM each have four FPSOs on order. There have been a range of responses to this increase in activity:

1.) Long-term agreements

a. ExxonMobil & SBM (September 2019), expected to cover requirements for three more FPSOs in Guyana

2.) New entrants

Kvaerner to expand: “We believe that we are able to offer one of the world’s best production lines for advanced FPSOs, focusing on secure execution within agreed quality, time and budget. We aim to win and execute a series of FPSO projects after Johan Castberg.”

3.) Capacity constraints/Cost inflation

a. Contractors have reported constraints in certain areas, particularly for yard capacity and experienced personnel.

b. Costs are starting to increase for in-demand, skilled roles

Figure 1. Leased FPSO Fleets of Leading Contractors, (c)EMA 2019

We will analyze these issues and more on the future of the industry in our next publication, which is the Floating Production Outlook Report (2020-2024). The report will be released in early December and contains a detailed analysis of the FPS market over the next five years.

About Energy Maritime Associates

The Floating Production Systems Report is a must read for anyone requiring trustworthy analysis of the FPSO sector to effect better decision making, assess business risk, and provide insight into project alternatives.

Since 1996, EMA has been providing independent, expert analysis of the FPSO market with an unbiased view. We pride ourselves on the accuracy of information provided built through an extensive network of industry contacts, and our depth of knowledge in floating production. Trusted by more than 200 clients worldwide, EMA serves the entire FPSO market including E&P companies, service providers, capital investment firms, and asset and facility owners.

EMA will be participating in the following industry events:

  • FPSO FLNG Asia, Oct 24-25 in Shanghai
  • Deepwater Executive Summit, Nov 19 in Houston
  • Please contact us to schedule a meeting to discuss how we can answer your questions about the floating production sector.

    For further information contact:

    Yun Xu | Senior Analyst

    Energy Maritime Associates Pte Ltd

    Tel: +86.137.7442.5032

    yun.xu@energymaritimeassociates.com

    2019 Q4 FPS Quarterly Report: Table of Contents

    I. Current and Planned Floating Production Systems

    Recent orders

    Recent deliveries

    What’s now being built

    Trend in order backlog

    Composition of order backlog

    Current fabrication and conversion activity

    Floater projects planned or under study

    Floating production database

    II. Recent Developments

    Floater Prospects in the Appraisal Stage

    Itaipu (Brazil)

    Buchan Redevelopment (U.K.)

    Floater Prospects in the Planning Stage

    Yakaar / Teranga (Senegal)

    NEW Arinaga LNG (Canary Islands)

    Bentley (U.K.)

    Cheviot (U.K.)

    Pilot (U.K.)

    Wisting (Norway)

    Ubon (Thailand)

    Andhra LNG (India)

    Floaters in the Bidding or Final Design Stage

    NEW Soyo LNG (Angola)

    Benin LNG (Benin)

    Mystras Replacement (Okono / Okpoho) (Nigeria)

    Equus (Australia)

    Atlanta/Olivia (Brazil)

    Itapu (Brazil)

    Mero (formerly Libra) 3 (Brazil)

    Parque Das Baleias (Caxareu/Pirambu) (Brazil)

    Zama (Mexico)

    Lebanon Regas Terminals (Lebanon)

    Leviathan FLNG (Israel)

    Liza 3 (Payara) (Guyana)

    NEW Bayan (Malaysia)

    Limbayong (Malaysia)

    Luzon Gas-to-Power (Philippines)

    Non-sanctioned FPS Projects

    Baja Sur LNG (Mexico)

    Delfin LNG (U.S.)

    Apsara (Cambodia)

    Rosmari / Marjoram (Malaysia)

    Ratna (India)

    New Orders

    Jotun A FPSO (Norway)

    Flora FSO (LNG) (Ghana)

    Cyprus FSRU (Cyprus)

    GasLog Singapore FSO (LNG) (Panama)

    MOL FSRU Challenger (Hong Kong)

    Systems on Order

    Penguins FPSO (U.K.)

    Portovyy FSO (LNG) (Russia)

    Liza Destiny FPSO (Guyana)

    Ingenium II (Ex-San Jacinto) BARGE (Cambodia)

    Madura MDA/MBH FPU BARGE (Indonesia)

    Surya Putra Jaya FPSO (Indonesia)

    Maran Speculative (Hull 2477) FSRU (TBD)

    Systems Recently Completed

    P 68 FPSO (Brazil)

    Turquoise FSRU (Turkey)

    Helang (ex-Four Rainbow) FPSO (Malaysia)

    Hoegh Galleon FSRU

    BW Paris FSRU

    Existing Systems

    Abo FPSO (Nigeria)

    Northern Endeavor FPSO (Australia)

    Petrojarl Cidade de Itajai FPSO (Brazil)

    Alba FSO & Captain FPSO (U.K.)

    Global Producer III FPSO (U.K.)

    PTSC Lam Son FPSO (Vietnam)

    Oceania FSO (Malaysia)

    Darin Star FSO (Singapore)

    Available Systems

    Front Puffin FPSO (Nigeria)

    Armada Perdana FPSO (Nigeria)

    Neptune FSRU

    Decommissioned Systems

    Cidade do Rio de Janeiro MV14 FPSO (Brazil)

    III. Underlying Market Drivers

    Global Oil and Gas Demand Drivers

    World Economic Growth

    Global Oil Price

    Oil Futures

    Natural Gas Price

    U.S. Onshore Production and Investment

    Offshore Drilling

    IV. Industry Activity & Analysis

    Most Likely Awards in the Next 12 Months

    FPSO Activity Increasing ... Experienced Contractors in High Demand

    Floating Production Sector Attracting New Players

    Fluor declares $239 million write-off on Penguins FPSO

    Appendix I: Projects in Planning Pipeline

    Africa

    Australia

    Brazil

    Canada

    Caribbean

    Gulf of Mexico

    Mediterranean

    North Sea

    Pacific

    South America (excluding Brazil)

    Southeast Asia

    China

    Southwest Asia and Middle East

    Appendix II: On Order / Under Repair FPS Units

    BARGE 2 units

    FPSO 20 units

    FLNG 4 units

    FSRU 14 units

    SEMI 6 units

    FSO 8 units (3 Oil, 5 LNG)

    MOPU 5 units

    Under Repair: Brazil 1 Unit

    Appendix III: Installed and Available FPS Units

    FPSO: 175 units

    BARGE: 9 units

    FLNG: 4 units

    FSRU: 25 units

    LNG REGAS: 7 units

    SEMI: 39 units

    SPAR: 21 units

    TLP: 27 units

    FSO: 104 units (100 Oil, 4 LNG)

    MOPU: 18 units

    Available - 49 Vessels

    Appendix IV: Historical Installed FPS Units

    2019 Q4 FPS Quarterly Report: List of Illustrations

    • Fig 1. Total Units by FPS Type

      Fig 2. Total FPSOs by Status

      Fig 3. Available Units by Type and Year Idle

      Fig 4. Units Awarded by Quarter

      Fig 5. Units Awarded by Capex

      Fig 6. FPS Units Awarded Since Q1 2019

      Fig 7. FPS Units Awarded-Details

      Fig 8. FPS Awards in Relation to Oil Price

      Fig 9. FPS Units Delivered in 2019

      Fig 10. FPS Units On Order by Hull Type

      Fig 11. FPS Units On Order by Contract Type (Lease/Own)

      Fig 12. Map of FPS Units on Order

      Fig 13. Order Backlog for FPS Units

      Fig 14. Orderbook 2008-2019

      Fig 15. Distribution of Units on Order by Yard

      Fig 16. Projects in Planning Pipeline by Region

      Fig 17. Projects in Planning Pipeline by Region-LNG&Non-LNG

      Fig 18. Deepwater and Ultra Deepwater Projects by Region

      Fig 19. Projects in Bidding and Final Design Stage by Region and Water Depth

      Fig 20. Projects in Planning Stage by Region and Water Depth

      Fig 21. Projects in Appraisal Stage by Region and Water Depth

      Fig 22. Map of FPS Units

      Fig 23. Table of Production and Storage Floaters by Type and Region

      Fig 24. FPSO by Status and Region

      Fig 25. FSO by Status and Region

      Fig 26. FSRU by Status and Region

      Fig 27. FLNG by Status and Region

      Fig 28. SEMI by Status and Region

      Fig 29. SPAR/TLP by Status and Region

      Fig 30. WTI and Brent Historical Price by Month

      Fig 31. World Liquid Fuels Production & Consumption Balance

      Fig 32. Demand and Supply Balance

      Fig 33. Brent Futures - Oct 2019 vs May 2019

      Fig 34. Brent Futures - Oct 2019 vs Aug 2018

      Fig 35. Henry Hub Natural Gas Price

      Fig 36. Historical Spot Gas Price

      Fig 37. North American Land Rig Count

      Fig 38. Global Forecast Floater Demand 2020-2021

      Fig 39. Global Forecast Jackup Demand 2020-2021

      Fig 40. Likely Awards in Next 12 Months (FPSOs)

      Fig 41. Likely Awards in Next 12 Months (Non-FPSOs)

      Fig 42. Leased FPSO Fleets of Leading Contractors

      Fig 43. FPS Units On Order / Under Repair

    Energy Maritime Associates Releases Updated Floating Production Systems Report

    In its latest quarterly Floating Production Systems Report, Energy Maritime Associates (EMA) reviewed the market for Floating Production Systems