Number of Production Floater Contracts in Near-term Queue at Record High

Philip Lewis
Monday, September 27, 2021

Crude prices have climbed to the upper-$70s, sustained by continued demand growth and the OPEC+ production curtailment agreement. 

Excess oil inventory has largely been eliminated, natural gas supply shortages have appeared in Europe and LNG prices have soared.  

Despite this, many upstream producers are in no rush to increase spending on capital projects, setting the scene for an energy shortage over the next few years. 

But activity in the deepwater sector keeps improving and the number of production floater contracts in the near-term queue remains at a record high. That’s the conclusion of an in-depth market analysis just completed by IMA/WER in the July 2021 Floating Production Systems Report.

IMA/WER’s Chairman Jim McCaul explains that, “close to 30 floater contracts are lined up for award over the next 18 months.  The principal constraint is the ability of the supply chain to absorb more orders, a problem that motivated Petrobras in mid-month to delay a major FPSO bid.”  

McCaul goes on to add that, ”meanwhile, BOEM has raised its estimate of remaining US GOM oil and gas reserves, hurricane Ida caused substantial damage to deepwater assets in the GOM and Wison received a contract to build two nuclear power barges.  

All is discussed in the September WER report.

Also in the data section of the report are details for 211 floater projects in the planning stage, 48 production or storage floaters now on order, 308 floating production units currently in service, and 45 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 September 26.


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


Categories: Activity FPSO Production Floating Production Energy

Related Stories

Putin: Russia Not Using Gas as a Weapon

Equinor's Barents Sea Johan Castberg Project Faces Further Delay, Cost Overrun

BW Energy Gets Hold of Two Offshore Blocks in Gabon

Current News

Esgian: Seadrill’s Fleet Value Plunges

RockRose Takes Over SSE's UK North Sea Gas Fields

New Kupe Compressor to 'Allow Us to Suck Harder on the Straw,' NZOG CEO Says

Germany's Nord Stream 2 Gatekeeper: The Long Road Until Gas Flows

Subscribe for OE Digital E‑News