Page 14: of Offshore Engineer Magazine (Jan/Feb 2019)

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MARKETS FPSO

FPSO SECTOR

OUTLOOK FOR NEW ORDERS & GROWTH TRENDS

BY JIM MCCAUL, IMA/World Energy Reports loating production storage and of? oading vessels average disguises signi? cant variation in ordering pace. The (FPSO) are by far the most popular type of ? oating high of 22 contracts was reached in 2010 when Petrobras or- production system, accounting for two thirds of the dered the hulls for eight serial FPSOs (two were subsequently

Foil and gas production ? oaters in service or available. canceled). In 2016 there were no orders. In both 2017 and 2018 contracts for nine FPSOs were placed.

Growth in FPSO inventory The nine FPSOs ordered in 2018 are to be employed in wa-

The number of FPSOs in operation or available for deploy- ter depth ranging from 32 meters (Area 1 FPSO off Mexico) ment has grown by 33% over the past 10 years, from 151 units to 1,700 meters (Tanin/Karish FPSO off Israel). Six of the at end-2009 to 201 units at end-2018. This increase re? ects orders utilize new purpose-built hulls – including a specula- the net result of delivery of new FPSOs and scrapping of aging tive FPSO hull ordered by SBM. Three are conversions or units over the 10-year period. modi? cations of existing FPSOs. Two of the 2018 contracts

There are currently ? ve FPSOs on order for delivery in – an FPSO for use by ExxonMobil offshore Guyana and an 2019. Assuming no scrapings of FPSOs over the next 12 FPSO for use by BP on an LNG project offshore Mauritania/ months, the expected deliveries will bring the total inventory Senegal – are front-end engineering design (FEED) contracts to 206 FPSOs at end-2019. structured to morph into engineering, procurement and con- struction (EPC) contracts. 10-year trend in FPSO orders

Contracts for 96 FPSOs were placed between 2009 and FPSOs now being built 2018 – an average of just under 10 FPSOs annually. But the Seventeen FPSOs are currently on order. Five are in the ? - 40 YEARS+ OF FPSO GROWTH (excludes FLNG/FSRU) STATUS OF 102 FPSO PROJECTS AS OF JAN

Source (all charts): IMA/World Energy Reports Database 14 OFFSHORE ENGINEER OEDIGITAL.COM 1-17 OE 2019.indd 14 1-17 OE 2019.indd 14 1/22/2019 10:58:59 AM1/22/2019 10:58:59 AM