Page 6: of Maritime Reporter Magazine (April 2011)

6 Maritime Reporter & Engineering News

EDITOR’S NOTE

A t long last it appears the business of discovering and recover- ing energy from the Gulf of Mexico is set to resume in earnest, as the Bureau of Ocean Energy Management has in the last month quickly picked up the pace of approving drilling permits from the region. While it is difficult to gauge the long term impact to the region, with barrel prices hovering above $100, it is fair to as- sume that while this accident will have far-reaching implications regarding technical spec and safety, from a business perspective it will appear a blip on the map.

While the combined offshore and maritime industry in the GOM region struggled for nearly the past year in the wake of the Deepwater Horizon blowout, oil spill and resulting moratorium, it should be heartened that in the big picture, the hunt to find and bring to market these energy resources has long- term, yet historically cyclical legs.

In the past 12 months we have dedicated ample editorial coverage to the evolving, dynamic market in Brazil, and this month is no exception, as our correspondent in Rio had the opportunity for a lengthy interview with Jon Harald Kilde, BW Offshore’s General Manager in Brazil. Kilde shares with Clau- dio Paschoa a blunt assessment of his company’s FPSO operations in the region, highlighting some of the struggles in regards to Brazil’s onerous “local content” rules, but also the vast potential that lies ahead for companies that are patient and persistent to establish a good long-term operations position in the region. This story starts on page 38. (As a side note, sister-publication Maritime Professional published in its 1Q 2011 edition a primer on setting up operations in Brazil. If you would like a copy, simply jot me a note at [email protected])

Floating Production globally will continue to be a driver for maritime business for the coming five years. According to a recent IMA report, the number of floating production systems in service con- tinues to grow at a rapid pace, with 250 units in service now vs. 120 in 2001. The order backlog stands today at 47 units, with expected orders for production floaters to average 24 to 35 units over the next five years. To succinctly summarize, Jim McCaul, head of IMA, said “if there is another business sec- tor more strategically positioned for future growth, I’d like to know about it.” Further details of the re- port can be found on page 49.

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No. 4 Vol. 73

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ON THE COVER

Pictured on this month’s cover is YÙUM K'AK'NÁAB FPSO (YKN) operating in Mexican side of the GOM. The FPSO market is set for tremendous growth, particularly in Brazil. See story on page 38. (Photo: Emerson Process Management)