NEWS RELEASE – September 21, 2018

In its Q4 2018 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.

Recent Highlights:

• FPSO orders highest in four years. Eight FPSOs have been awarded so far in 2018, including six newbuilt units (five in china one in Singapore) and two redeployments of idle units. This is the most FPSO orders since oil price crashed in 2014.
• More Awards on the Way. EMA has identified 31 projects most likely to be sanctioned in the next 12 months. This includes 17 FPSOs, 5 FSRUs, 4 FSOs, 2 Production Semis, 2 MOPUs, and 1 FLNG. A few of these will be awarded by year end, with most being approved in 2019.
• SBM – Back in Brazil. In Q3 2018, SBM settled its legacy issues with Brazilian authorities and agreed to payments worth USD 342 million. After a four year hiatus, SBM is now able to compete for new Petrobras contracts. Its Fast4Ward design is well suited for the large pre-salt FPSOs, such as the current Mero 2 tender.
• HHI Closes Offshore Yard. Due to lack of work, Hyundai shut its dedicated offshore facility in August 2018 after seven years in operation. HHI has not won an FPS order since 2014, other than FSRUs, which are built in the main shipbuilding yard.

(c)EMA 2018

According to EMA’s Managing Director, David Boggs, “Oil prices have rebounded over 100% from their lowest levels, while offshore costs have hardly moved. As a result, many offshore developments are now very competitive, if not more attractive, than onshore shale fields, with breakevens as low as $30/bbl. We see this as the start of a new cycle for the industry, with re-set pricing and a growing oil price, similar to the period from 2004/5. If oil prices remain stable, there is tremendous opportunity for new floating production projects over at least the next two years. While there have been substantial industry reductions and consolidation, there is still sufficient industry capacity, particularly in the subsea and drilling sectors through 2020.”

For further information contact:

Energy Maritime Associates Pte Ltd

2018 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

NEW UD-1 (Cluster 3) (India)

Floater Prospects in the Planning Stage

Cameia (Angola)
NEW OML 18 (Nigeria)
NEW Tortue FLNG #2-4 (Mauritania)
NEW Adelaide LNG (Australia)
Doradao / Roc / (Australia)
Flemish Pass (Mizzen / Harpoon / Bay du Nord) (Newfoundland)
NEW Western LNG (Canada)
NEW Liza 4 / Liza 5 (Guyana)
NEW Kelidang Cluster (Brunei)

Floaters in the Bidding or Final Design Stage

Anyala / Madu (Nigeria)
Etinde (Cameroon)
NEW Mystras Replacement (Nigeria)
Paradise/Pecan (Ghana)
New South Wales LNG (Australia)
Atlanta/Olivia (Brazil)
Buzios V (Brazil)
Marlim Revitalization 1 & 2 (Brazil)
Amoca, Mizton, Tecoalli (Mexico)
NEW Baja Sur LNG (Mexico)
NEW Pajaritos LNG (Mexico)
Liza 3 (Payara / Pacora) (Guyana)
Sea Lion (Falklands)
NEW Nam Du / U Minh (Vietnam)
Lufeng Redevelopment (12-3/14-4/15-1/22-1) (China)
NEW Mina Al-Ahmadi (Kuwait)
Ratna (India)
Non-Sanctioned FPS Developments
Boudji & Ivela (Gabon)
Fortuna FLNG #2 (Equatorial Guinea)
Crux (Australia)
Zama (Mexico)
Pechora LNG (Russia)
New Orders
Liza 2 FPSO (Guyana)
Surya Putra Jaya FPSO (Indonesia)
Excel FSO (LNG) (Russia)
BW GDF Suez Paris FSRU (Speculative)

Systems on Order

Gandria FLNG (Equatorial Guinea)
Golar Freeze FSRU (Jamaica)
Aoka Mizu FPSO (U.K.)
Hoegh Speculative (Hull 2909) FSRU
Systems Recently Completed
BW Adolo FPSO (Gabon)
Egina FPSO (Nigeria)
P 69 FPSO (Brazil)
P 75 FPSO (Brazil)
Barakuda Natuna FSO (Indonesia)
NEW Scarlet Trader FSO (Indonesia)
Mekar Bergading FSO (Malaysia)
Bratasena FSO (Myanmar)
Hai Yang Shi You 111 FPSO (China)
Bahrain Spirit FSO (LNG) (Bahrain)

Existing Systems

Montara Venture FPSO (Australia)
Pyrenees Venture FPSO (Australia)
Armada Kraken FPSO (U.K.)
Curlew (ex-Maersk Curlew) FPSO (U.K.)
FPF 1 SEMI (U.K.)
Petrojarl Banff FPSO (U.K.)
Voyageur Spirit FPSO (U.K.)
Jotun A FPSO (Norway)
Armada TGT 1 FPSO (Vietnam)
Rubicon Intrepid FPSO (Philippines)
Exquisite FSRU (Pakistan)

Available Systems

Armada Perdana FPSO (Nigeria)
Modec Venture 11 FPSO (Australia)
Petrojarl Cidade de Rio Das Ostras FPSO (Brazil)
Deep Panuke MOPU (Canada)

Decommissioned Systems

PTAP-One FPSO (Indonesia)
Intan FSO (Indonesia)
Abu FSO (Malaysia)
Amity Star FSO (Malaysia)
Concord M FSO (Malaysia)
Yetagun FSO (Myanmar)
SKS Douro FSO (West Africa)
Units under Repair
Ngujima Yin FPSO (Australia)

Cancelled Orders

Maran Speculative #2 FSRU

III. Underlying Market Drivers

Global Oil and Gas Demand Drivers
Oil and Gas Outlook for 2018/2019
Long Term Demand for Oil and Gas
Growing LNG Demand
Global Oil Price
Oil Futures
Natural Gas Production and Price
U.S. Onshore Activity
Offshore Drilling
E&P Development Costs

IV. Industry Activity & Analysis

Most Likely Awards in Next 12 Months
SBM - Back in Brazil
Hyundai Closes Offshore Yard

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 1 unit
FPSO 20 units
FLNG 4 units
FSRU 19 units
SEMI 3 units
TLP 1 unit
FSO 4 units (1 Oil, 3 LNG)
MOPU 4 units
Units Under Repair

Appendix III: Installed and Available FPS Units

FPSO: 175 units
BARGE: 9 units
FLNG: 3 units
FSRU: 22 units
LNG REGAS: 3 units
SEMI: 39 units
SPAR: 21 units
TLP: 28 units
FSO: 101 units (96 Oil, 5 LNG)
MOPU: 14 units
Available - 45 vessels

Appendix IV: Historical Installed FPS Units

2018 Q4 FPS Quarterly Report: List of Illustrations

• Fig 1. Total Installed Units by FPS Type
  Fig 2. Total FPSOs by Status
  Fig 3 Units Awarded by Quarter
  Fig 4. FPS Units Awarded Since Q1 2018
  Fig 5. Units Awarded by Capex
  Fig 6. FPS Awards in Relation to Oil Price
  Fig 7. FPS Units Delivered in 2018
  Fig 8. FPS Units On Order by Hull Type
  Fig 9. FPS Units On Order by Contract Type (Lease/Own)
  Fig 10. Map of FPS Units on Order
  Fig 11. Order Backlog for FPS Units
  Fig 12. Orderbook 2008-2018
  Fig 13. Distribution of Units on Order by Yard
  Fig 14. Projects in Planning Pipeline by Region
  Fig 15. Projects in Planning Pipeline by Region-LNG&Non-LNG
  Fig 16. Deepwater and Ultra Deepwater Projects by Region
  Fig 17. Projects in Bidding and Final Design Stage by Region and Water Depth
  Fig 18. Projects in Planning Stage by Region and Water Depth
  Fig 19. Projects in Appraisal Stage by Region and Water Depth
  Fig 20. Map of Installed FPS Units
  Fig 21. Table of Production and Storage Floaters by Type and Region
  Fig 22. FPSO by Status and Region
  Fig 23. FSO by Status and Region
  Fig 24. FSRU by Status and Region
  Fig 25. FLNG by Status and Region
  Fig 26. SEMI by Status and Region
  Fig 27. SPAR/TLP by Status and Region
  Fig 28. World Liquid Fuels Production & Consumption Balance
  Fig 29. Annual Change in World Liquid Fuels Consumption
  Fig 30. World Energy Consumption by Energy Source
  Fig 31. Global Supply by Source
  Fig 32. LNG Imports by Region
  Fig 33. Global Gas Demand Growth by Sector
  Fig 34. Deliveries to FSRUs
  Fig 35. WTI and Brent Historical Price by Month
  Fig 36. Brent Futures - Aug 2018 vs May 2018
  Fig 37. Brent Futures - Aug 2018 vs Sep 2017
  Fig 38. Historical Spot Gas Price
  Fig 39. North American Land Rig Count
  Fig 40. Dayrates and Utilization-Jackups
  Fig 41. Dayrates and Utilization-Drillships
  Fig 42. Dayrates and Utilization-Semisubmersibles
  Fig 43. Comparison of Operating Cost, Capital Cost and Oil Price Indices
  Fig 44. Likely Awards in Next 12 Months (FPSO)
  Fig 45. Likely Awards in Next 12 Months (Non-FPSO)
  Fig 46. Petrobras Orders 2013-2019 by FPSO Owner and Installation Date
  Fig 47. HHI Offshore Yard Layout
  Fig 48. Hyundai Heavy Industries Track Record
  Fig 49. FPS Units On Order / Under Repair