NEWS RELEASE – August 2, 2017
In its Q3 2017 Floating Production Systems Report, Energy Maritime Associates (EMA) reviewed the market for Floating Production Systems, including FPSOs, FLNGs, FSRUs, TLPs, Spars, Semis, FSOs, and MOPUs.
What happened so far in 2017:
Petrobras Returns to the FPSO Market. After two years without placing any FPSO orders, Petrobras plans for eight additional units to start production in 2020-2021. Tenders are underway for three developments with five more to be launched within the next two years.
Upcoming Awards. EMA has identified 24 possible awards within the next 12 months, including thirteen FPSOs and eight FSRUs. However, some may be delayed due to political and financial difficulties. The most likely upcoming awards have a combined capex of almost $7 billion: Libra & Sepia FPSOs (Brazil), Lancaster FPSO (UK), Johan Castberg FPSO (Norway), and SBM’s Fast4Ward speculative FPSO hull.
The normal movement of project developments from appraisal to planning to bidding/final design has resumed, with over 230 potential developments being tracked.
New exploration results from Mexico’s Zaza discovery could require an FPSO or FSO.
FLNG projects seem to be regaining momentum with studies underway in Congo, Cameroon, Equatorial Guinea, and the USA. However, these are to monetize existing gas production, rather than to develop new fields
According to EMA’s Managing Director, David Boggs, “The recovery that began in Q4 2016 has continued, albeit at a gradual pace of one floating production unit per month. This is well below the historical average of 1.5 orders/month, but far better than the past two years. Confidence appears to be retuning as seen by the recent sanction of the Coral South megaproject including award of the first non-speculative FLNG in over three years. In addition, Petrobras is back in the market tendering for three FPSOs, with plans for five more within the next two years. A number of analysts are calling the bottom of the drilling market and many companies are starting to lock-in record low rates for both production and exploration drilling. While oil prices are expected to remain low, there are still a number of viable offshore projects today as a result of lower supply chain costs and revised development plans.”
I. Current and Planned Floating Production Systems
II. Recent Developments
Floater Prospects in the Appraisal Stage
Floater Prospects in the Planning Stage
Floaters in the Bidding or Final Design Stage
Systems on Order
Systems Recently Completed
Units Under Repair
III. UNDERLYING MARKET DRIVERS
IV. COMPANIES AND TECHNOLOGY
Appendix I: Projects in Planning Pipeline
Appendix II: On Order / Under Repair FPS Units
Appendix III: Installed and Available FPS Units
Appendix IV: Historical Installed FPS Units