Page 26: of Maritime Reporter Magazine (April 2025)

OFFSHORE ENERGY © Wolfborn Indiearts/AdobeStock

FPSO MARKET 2025

DEMAND STEADY, PRICES SOAR

Matt Tremblay, Vice President, Global Offshore at ABS, shares with

Maritime Reporter his insights on drivers for the market in 2025 and beyond, from new designs to digitalization’s evolving role in maintenance.

By Greg Trauthwein are the backbone of off- second halves of 2025, with the majority leaning toward new shore oil and gas pro- construction. However, some conversions will still play a role.”

FPSOs duction discovery and

SHIFTING DYNAMICS recovery, providing a bridge between deepwater reservoirs and global energy markets. Today the oil and gas industry as Traditionally, FPSO conversions—modifying existing a whole faces consistent and sometimes rapid shifting land- tanker hulls for offshore production—offered a cost-effective scape in terms of economics, technology and sustainability. and faster alternative to new builds. However, the industry has

According to Tremblay, the FPSO market in 2025 is expect- seen an increasing tilt toward new construction, with 80% of ed to remain stable, with 10 to 12 offshore production projects projects in 2024 being newly built.

reaching ? nal investment decisions (FIDs)—a continuation This trend is fueled by major players such as Exxon and of 2024 trends. Brazil remains a focal point, with Petrobras Petrobras, who are commissioning high-capacity FPSOs, ex- leading signi? cant developments, including the Petrobras 86 ceeding 200,000 barrels per day. project and SEAP 1 and SEAP 2 FPSOs. Shell’s Gato do Mato Tremblay notes, “Conversions can’t accommodate FPSOs project is also anticipated to move forward early in the year. of this scale, as they’re larger than even the biggest ultra-large “The year is front-loaded with Brazil’s activity,” says Trem- crude carriers (ULCCs). And with limited shipyards capable blay. “We expect around four to six FIDs in both the ? rst and of building them, costs are naturally higher.” 26 Maritime Reporter & Engineering News • April 2025

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