FPSO Market Recovery Underway and Expected to Reach 2011-2014 Levels

 

NEWS RELEASE – April 30, 2018

                                                                           

In its Q2 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:

  • Orders Continue. After almost two years without an order, 13 FPSOs have been awarded since Q4 2016. Three FPSOs have already been awarded so far in 2018 with another 10 possible orders by year end, bringing the annual total back to levels not seen since 2014.
  • Korea’s Loss is Sembcorp’s Gain. After encountering significant issues with legacy production projects, the big three Korean yards have only been awarded one non-LNG project since 2016. Daewoo and Hyundai seem focused on standardized units, like FSRUs, while Samsung has been awarded ENI’s Coral South FLNG and BP’s Mad Dog 2 Semi. Sembcorp has capitalized on this opportunity and been awarded three contracts: a Production Semi for Shell’s Vito field in the USA, an FPSO hull for Statoil’s Johan Castberg field in Norway, and an FPSO for Energean’s Karish development in Israel. These new units will be built in Sembcorp’s mega-yard facility in Singapore.
  • Majors come to China for the first time. Shell’s Penguins FPSO will be built in China. It is also likely that as BP’s Tortue FPSO and the future FPSOs for ExxonMobil’s Liza field will be built in China.

(c)EMA 2018

 

According to EMA’s Managing Director, David Boggs, “The gradual recovery that began in 2017 has firmly taken hold with FPSO orders expected to reach pre-oil crash levels. In line with our 2018-2022 forecast, there should be at least 10 FPSO awards this year. Oil companies realize that costs in the supply chain are unlikely to reduce further and now is the time to act. After substantial reductions in capacity, industry consolidation, and certain sectors working for below variable cost, it is only a matter of time before margins begin to rise. Drilling rates for harsh environment rigs in the North Sea have moved upwards, but this is not yet the case for Jackups and Drillships in the rest of the world. Moreover, input costs for commodities, such as steel, are also increasing. However, there is still a long way to go before these increasing costs begin to threaten the economics of many deepwater projects. The US Energy Information Agency expects global production from deepwater to grow by 2.5 million b/d over the next 20 years, driven by new developments in areas including Brazil, Mexico, and Guyana.”

For further information visit us at OTC (Booth 4471) or contact:

Yun Xu
Energy Maritime Associates Pte Ltd

Tel: +65.9177.1368 (Singapore)

Tel: +1.202.800.8390 (USA)

fps@energymaritimeassociates.com

 

2018 Q3 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
  • Current fabrication and conversion activity
  • Floater projects planned or under study
  • Floating production database

II. Recent Developments

Floater Prospects in the Appraisal Stage   

  • NEW  Ivela (Gabon)
  • NEW  Galapagos (formerly NW Hutton & Darwin) (U.K.)
  • Dara East (Indonesia)
  • NEW  Enping 15-1 (China)

Floater Prospects in the Planning Stage

  • Block O & I (Equatorial Guinea)
  • Browse (Calliance / Brecknock, Torosa) (Australia)
  • Equus (Australia)
  • Scarborough (Australia)
  • Buffalo Redevelopment (East Timor)
  • Barryroe (Ireland)
  • Cork LNG (Ireland)
  • NEW  Matanzas Bay LNG (Cuba)
  • NEW  Acajutla LNG (El Salvador)
  • NEW  Cebu Gas-to-Power (Philippines)

Floaters in the Bidding or Final Design Stage  

  • SNE – Lupalupa / Baobab (Senegal)
  • Barossa (Australia)
  • Parque Das Baleias (Caxareu/Pirambu) (Brazil)
  • UTE GNA-1 & 2 (ex Grupo Bolognesi) (Brazil)
  • Adria Regas Terminal (Croatia)
  • NEW  Kings Landing (Khaleesi / Mormont) (U.S.)
  • Shenandoah (U.S.)
  • Lebanon Regas Terminals (Lebanon)
  • Cambo Hub EPS (U.K.)
  • Apsara (Cambodia)
  • Hong Kong LNG (Hong Kong)
  • KG-D6 / MJ Field (India)
  • KG-DWN-98/2 (India)

Cancelled Projects   

  • Mozambique LNG (Mozambique)
  • Katmai (U.S.)
  • North of Alvheim (Norway)
  • Gangavaram Regas Terminal (India)

New Orders 

  • Tortue FPSO (Mauritania)
  • P 71 FPSO (Brazil)
  • Hai Yang Shi You 119 FPSO (China)

Systems on Order 

  • Gandria FLNG (Equatorial Guinea)
  • Gimi FLNG (Mauritania)
  • Kaombo Sul FPSO (Angola)
  • BW Adolo (Gabon)
  • Njord Bravo FSO (Norway)
  • OSX 1 FPSO and CRD TLP (Vietnam)
  • Mekar Bergading FSO (Malaysia)
  • Exmar Speculative FSRU (Bangladesh)

Systems Recently Completed

  • Cidade de Campos dos Goytacazes MV29 FPSO (Brazil)
  • P 67 FPSO (Brazil)
  • Appomattox Semi SEMI (MC 392 / DC 353)
  • Ailsa FSO (U.K.)
  • Benchamas 2 FSO (Thailand)
  • Hoegh Esperanza FSRU (China)
  • Excellence FSRU (Bangladesh)
  • GDF Suez Cape Ann FSRU (India)

Existing Systems 

  • Golar Arctic FSO (LNG) (Jamaica)
  • Helix Producer I BARGE (GC 236/237)
  • Ram Powell TLP (VK 956)
  • Titan SPAR (AT 63/MC 941,942)
  • Orkid FSO (Malaysia/ Vietnam)
  • Brotojoyo FPSO (Indonesia)

Available Systems  

  • MTC Ledang FPSO (Malaysia)

Decommissioned Systems  

  • Tantawan FPSO (Thailand)
  • Benchamas Explorer FSO (Thailand)
  • Ta’Kuntah FSO (Mexico)
  • CS Pioneer FSO (Singapore)
  • African Leader FSO (Togo)

III. UNDERLYING MARKET DRIVERS     

  • Global Oil and Gas Demand Drivers
  • Oil and Gas Outlook for 2018/2019
  • Long Term Demand for Oil and Gas
  • Global Oil Price
  • Oil Futures
  • Natural Gas Production and Price
  • U.S. Onshore Production and Investment
  • Offshore Drilling

IV. COMPANIES AND TECHNOLOGY

  • Most Likely Awards in Next 12 Months
  • Available LNG & Available FSRUs

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 23 units
  • FLNG 4 units
  • FSRU 19 units
  • SEMI 3 units
  • TLP 1 unit
  • FSO 7 units
  • MOPU 4 units
  • Under Repair Units

Appendix III: Installed and Available FPS Units 

  • FPSO: 173 units
  • BARGE: 9 units
  • FLNG: 3 units
  • FSRU: 22 units
  • LNG REGAS: 2 units
  • SEMI: 39 units
  • SPAR: 21 units
  • TLP: 28 units
  • FSO: 101 units
  • MOPU: 15 units
  • Available Units

Appendix IV: Historical Installed FPS Units  

 

2018 Q3 FPS Quarterly Report: List of Illustrations

  • Fig 1. Total Installed Units by FPS Type
  • Fig 2. Total FPSOs by Status
  • Fig 3. FPS Units Awarded Since Q1 2018
  • Fig 4. Units Awarded by Capex
  • Fig 5. Units Awarded by Quarter
  • Fig 6. FPS Awards in Relation to Oil Price
  • Fig 7. FPS Units Delivered in 2018
  • Fig 8. Total On Order Units by FPS Type
  • Fig 9. Total On Order Units by FPS 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. Demand Supply Balance
  • Fig 29. Non-OPEC Crude Oil and Liquid Fuels Production Growth
  • Fig 30. Transport Energy Consumption by Fuel Type
  • Fig 31. Liquids Demand Growth
  • Fig 32. Shares of Total Power Generation
  • Fig 33. WTI and Brent Historical Price by Month
  • Fig 34. Brent Futures – May 2018 vs Jun 2017
  • Fig 35. Brent Futures – May 2018 vs Mar 2018
  • Fig 36. US Natural Gas Production and Imports
  • Fig 37. Historical Spot Gas Price
  • Fig 38. North American Land Rig Count
  • Fig 39. Dayrates and Utilization-Jackups
  • Fig 40. Dayrates and Utilization-Drillships
  • Fig 41. Dayrates and Utilization-Semisubmersibles
  • Fig 42. Annual Average Jackup Fixture Rates for Selected Regions
  • Fig 43. Likely Awards by Mid 2019 (FPSO)
  • Fig 44. Likely Awards by Mid 2019 (FLNG, FSRU, FSO, SEMI)
  • Fig 45. Potential Production Semi Requirements
  • Fig 46. Deliveries to FSRUs
  • Fig 47. Stalemate Constraining Growth of LNG Supply
  • Fig 48. FPS Units On Order / Under Repair

Meet EMA at Asia Offshore Energy Conference Sep 26-28 2018 | Indonesia Find Out More