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MARKETS FPSO nal stage of completion, with delivery scheduled by end-2019. The remaining 27 projects in the planning queue are

Another two are scheduled for completion in 2020. The re- stalled. Some of these are stalled due to economics. Some maining 10 are in an early stage of construction with delivery are awaiting ? eld partner or agreement on ? eld commercial planned in 2021/22. terms. Others are stalled by government opposition, ? eld

Five (30%) of the FPSOs being built are for use off- rights issues, operator failure or sanctions that prevent the shore Brazil. The rest are for use offshore Northern Europe project moving forward. (three), Guyana (two), West Africa (two) and Mexico, Is- rael, China and Malaysia (one unit each). The remaining Outlook for FPSO contracts unit is being built on speculation and, at the moment, has Each year IMA/WER makes a forecast of ? oating produc- no ? eld assignment. tion system contracts likely to be placed over the following

Ten of the FSPOs are being built on new hulls, while the ? ve years. The forecast takes into account the number of proj- other seven are conversions or upgrades to existing units. ects in the planning queue and our assessment of market con-

China has become the major location for FPSO construc- ditions likely to exist over the next ? ve years.

tion and conversions. Eleven of the 17 FPSOs on order are While there are more than 100 FPSO projects at various partially or fully contracted to Chinese yards. Singapore has retained second position, with four of the 17 orders.

TREND IN NO. of FPSO IN SERVICE or AVAILABLE

Korean yards – at least for the time being – have disap- peared from FPSO fabrication. Topsides plant fabrication

As of Number Growth Index and integration is spread over a variety of contractors in

End Year of FPSOs (2009 = 100)

Asia, Europe and Brazil. 2009 151 100 2010 155 103

Planned FPSO projects 2011 159 105

We have identi? ed 102 projects in the planning stage that 2012 165 109 could require an FPSO as a production system. Some of these 2013 174 115 are near term, some further out. 2014 185 123

Of the total, 11 projects are at the bidding or contract ne- 2015 185 123 gotiation stage. Another 10 are in the near-term investment 2016 195 129 queue, and four are in FEED.

2017 193 128

Another 50 projects are further out in the planning stage – 2018 201 133 either in development concept de? nition (28), E&P (19) or

Source: IMA/World Energy Reports Database commercial framework negotiation (three).

F JANUARY 2019 NUMBER OF FPSOs ORDERED, 2009-2018

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