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November 2011www.marinelink.com 75an increasingly important role in meetingthe growth in market demand. Local content? such requirementsare becoming increasingly important. InBrazil, Petrobras is aiming to source upto 70% of its FPS related equipment fromlocal providers. OGX is also planning to source most ofits units from Brazilian shipyards, in par- ticular those owned by its parent com- pany EBX. MARKET FORECASTDW forecast a total of 134 installations over the 2012-2016 period, with a global Capex of $68b. These installations represent a 37% in-crease on the 2007-2011 period, with acorresponding increase of 81% in Capex terms. The disparity between the two per- centages is a reflection of factors such as: A larger proportion of newbuilds and conversions compared to redeployments A greater degree of local content, raising the cost of relevant equipment and services Cost inflation. FPSOs represent by far the largest seg- ment of the floating production market in terms of numbers and account for over 80% of the forecast Capex. As mentioned previously, Latin Amer- ica accounts half of our projected Capex. When comparing this to the number ofinstallations forecast it is clear to see thatthe region has higher than average capital costs compared to others. This is largely due to strict local content requirements. Africa is the next most important region in both numerical terms and forecastCapex as, like in Latin America, a large proportion of the African installations are large units installed in deepwater areas. Although a predominantly shallow water region where fixed platforms are utilized, Western Europe is expected to see several FPS installations over the next five years. Some of these projects revolve around the rejuvenations of mature pro- ducing areas where FPSs are used to pro-vide water injection capability. A large number of orders are expected during the course of 2011 and 2012. This includes a bulk order for Petrobras, the Brazilian NOC. The company is expected to order twelve vessels during 2011, six which are destined for the Lula (Tupi) de- velopment. Many of these FPSOs will be newbuild units, with hulls constructed at the Brazilian yards.Not surprisingly Petrobras, with forecast Capex of $21.6bn, is expected to be the biggest spender over the com- ing five years, followed by fellow Brazilian operator OGX and ?super- majors? such as Total, Shell and BP. About the Report?The World Floating Production Market Forecast 2012-2016? isthe latest in an acclaimed seriesof business studies used by or- ganisations in over 70 countries.These include oil majors, drillingcompanies investment banks,OEMs, contractors, and govern-ment departments & agenciesworldwide. Market forecasts are based on DW?s in-house Oil & Gas database which details over900 FPS projects. For more in- formation, or to order this report: www.dw-1.com MR Nov.11 # 10 (74-80):MR Template 11/4/2011 10:43 AM Page 75