Page 38: of Maritime Reporter Magazine (April 2014)

OFFSHORE OIL & GAS ANNUAL Floating production has been one of the most signiÞ cant developments in the oil and gas industry over the past four decades. Since the Þ rst ß oating production unit (Argyll) was installed in 1975, more than 350 offshore Þ elds too deep, too remote or too small for Þ xed platforms have been developed using ß oating production facilities. Looking forward, the future of the sector continues to look very promis-ing, but some barriers and threats to growth have appeared. Current Inventory Three hundred and twenty (320) oil/gas ß oating production units are now in service, on order or available for re-use on another Þ eld. FPSOs ac- count for 65% of the existing systems, 74% of systems on order. Production semis, barges, spars and TLPs com- prise the balance.Another 29 ß oating LNG process- ing systems are in service or on order. Liquefaction ß oaters account for 14%, regasiÞ cation ß oaters 86%. No lique- faction ß oaters are yet in service: all four are on order. Several of the 12 active FSRUs are interim regasiÞ ca-tion units being used until the long term unit is delivered. In addition, 102 ß oating storage units are in service, on order or available. (See Chart 1, top left on page 40)Ten Year Growth Trend The number of production ß oaters in service or available has increased 84% over the past 10 years. At end of 2003 there were 152 units; by the end of 2013 the total increased to 279 units. With scheduled deliveries this year, by end-2014 the inventory will grow another 8% to 300 units in ser- vice or available, assuming no units are scrapped. Composition of the op-Floating Floating Production Production BY JIM MCCAUL, IMA 38 Maritime Reporter & Engineering News ? APRIL 2014 Floating Production inventory continues to grow, but rising costs, shale oil & gas are starting to create signi Þ cant headwindsMR #4 (34-41).indd 38MR #4 (34-41).indd 384/4/2014 11:09:54 AM4/4/2014 11:09:54 AM