WER: Near-term Outlook for Floating Production Systems 'Very Positive'

Thursday, July 29, 2021

The oil and gas sector continues to rebound from the great downturn, though regional surges of Covid-19 have been spooking the market, causing crude prices to be a bit volatile over the past two weeks. But, the near-term outlook remains very positive.  

This is the conclusion of the in-depth market analysis in the July 2021 Floating Production Systems Report - a go-to database for all things FPSO/FPU - just released by International Maritime Associates/World Energy Reports (IMA/WER).

Asked what is driving the positive sentiment, WER’s Chairman Jim McCaul explains that, “crude inventory has continued to fall as oil demand rebounds and OPEC+ oil producers restrain supply. Deepwater drilling has continued to strengthen. Major industry suppliers are reporting improved results and providing bullish guidance for projected financial results.”

McCaul goes on to add that “the number of near-term production floater contracts likely in 2021/22 has grown as improving conditions motivate field operators to accelerate the timing of planned project FIDs.”  

Meanwhile, Brazil's Petrobras has tendered for an FPSO to use in Sergipe-Alagoas Basin, U.S. major Chevron made the final investment decision on its Jansz-Lo compression project in Australia, and Golar’s FLNG operating off Cameroon received production expansion approval, and all this is discussed in the July WER report.

Apart from Brazil which is the country with the most active FPSOs and with several more planned, in a comment for Offshore Engineer on Wednesday, McCaul said that Guyana, with its newly discovered oil riches, has a huge appetite for FPSOs, too, with Exxon planning up to 10 projects for its prolific Stabroek block.

207 floating production units in planning stage

Back to the WER report, in the data section there are details for 207 floater projects in the planning stage, 48 production or storage floaters now on order, 307 floating production units currently in service, and 44 production floaters available for redeployment contracts.

Charts in the report update the location where floating production and storage systems are being planned, operating, and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of July 26, 2021.

For more information on Floating Production Systems Report, please visit www.worldenergyreports.com or contact Rob Howard at +1 561 732 4368 or Phil Lewis at +44 203-966-2492

Categories: FPSO Production Floating Production Offshore FPU FLNG

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