Page 52: of Offshore Engineer Magazine (Apr/May 2013)

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FPSO

EPIC

Newbuild growth:

Brazil, Africa, SE Asia and Australia owned by leasing contractors, with over the forthcoming fve years.

The FPSO market

SBM leading the way in feet addi- Indeed, recent contracts, such as the appears to be emerging tions and refurbishments. one for Shell’s Prelude FLNG FPSO

Perhaps predictably, Keppel and that saw construction commence from the economic its subsidiary Keppel Shipyard October 2012 at Samsung Heavy downturn stronger than hold the dominant share of con- Industry’s Geoje Shipyard in South ever, with new project version projects taking place over Korea, represent a huge step within the next fve years. Specializing in the emerging FLNG sector, and add awards and forecasted fast-track modifcation and fabri- impetus for similar developments to capital expenditure cation work, key clients include receive fnancial backing. Over the expected to gain leading lease contractors SBM and 2013-2017 period, Infeld Systems

BW Offshore. SembCorp Marine’s expects four FLNG installations to momentum throughout

Jurong Shipyard also has a tradi- take place, with additional capital the next fve years. tion of specializing in convertsion expenditure expected on a possible projects. In addition, with the FPSO further eight developments, to be

While challenges certainly remain, sector expected to be heavily domi- installed during the course of 2018 strong driving forces, including nated by developments offshore and 2019.

W the movement into deeper, more Brazil over the next fve years and Infeld Systems expects the remote waters, the emergence of beyond, Brazil’s Odebrecht, along- number of newbuild units enter-

FLNG technology and the unwaver- side it’s Japanese partner Kawasaki ing the market to peak in 2016 ing ambitions of Brazil’s national Heavy Industries, is expected to and 2017, with Prelude likely to oil company, are set to support the emerge as a key player within the feature as the largest of these new use of the FPSO concept within the sector. It already secured Petrobras’ installations. On a global level, the offshore market for many years to conversion projects for four ultra- come. deepwater FPSOs, to be located in the pre-salt Santos Basin.

Awards for newbuild units have

Conversions and Newbuilds

In terms of the global active feet, also witnessed an increase in recent converted and refurbished FPSOs years, with newbuild solutions form the majority share at 68% of generally favored by IOCs develop- operational units as of 1Q 2013. ing large felds with longer feld

Despite a growth in FPSO develop- life expectancies. Going forward, ments anticipated to take place in the newbuild market is expected more challenging environments and to be predominately driven by the deeper waters; often necessitating demand for new technologies and the construction of a technology- concepts to meet the challenges of specifc new build unit, the con- harsh environments and challenging verted FPSO sector is forecast to reservoir conditions. In addition, remain robust going forward to with operators turning their atten- 2017, with FPSO leasing contractors tions toward the natural gas market, further strengthening their place in the FLNG concept has also emerged, the market. Indeed, of the 12 FPSOs and is likely to form a signifcant currently under conversion, half are proportion of newbuild investment

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