SINGAPORE – In its latest quarterly Floating Production Systems Report, Energy Maritime Associates (EMA) reviews the market for Floating Production Systems. In the first quarter of 2021 there have been three FPSO awards, which is the same as there were for all of 2020. We expect the pace of awards to increase toward the end of 2021 and have identified 29 projects (including 14 FPSOs and 5 Production Semis) that are most likely to be sanctioned in the next 12 months. This assumes continued management of the global pandemic and oil prices remaining in the $60s.
This comprehensive 270-page report contains details of recent developments including:
There has been limited competition for recent Petrobras FPSOs.
We are tracking revisions in Petrobras’ contracting strategy including a move back to more EPC contracts and alternatives to a leased FPSO. The EPC model was recently approved for Buzios 7 and 8, and the BOT (build, operate, transfer) model is under consideration for future projects. It is likely that Deepwater Sergipe could be the first BOT.
Petrobras announced that Modec will not be able to bid for 13 months as a sanction for: “failure to meet operational performance expectations on the charter and service contracts of the Cidade de Niteroi, Cidade de Santos and Cidade do Rio de Janeiro FPSOs.” These are leased units that began operation in 2007-2009.
Modec is restricted from bidding through April 2022. However, it is unlikely that Modec would have participated in these tenders in any case. Modec does not expect any financial impact from these sanctions as they do not involve operating units. Their last tender submission was for the Marlim FPSOs awarded in October 2019. Modec currently has a backlog of 7 FPSOs (including 4 for Petrobras) with deliveries through 2024.
Figure 1. Graph showing historical FPS awards vs. average WTI price by year. Increasing oil prices are a bright indicator for future project awards.
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.
EMA provides 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.
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SINGAPORE – In its latest quarterly Floating Production Systems Report, Energy Maritime Associates (EMA) reviews the market for Floating Production Systems. In the first quarter of 2021…