Page 33: of Offshore Engineer Magazine (Jan/Feb 2020)

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Business Models

BY WILLIAM STOICHEVSKI

As New Year 2020 unfolds, there are 21 floating production, storage and offloading units (FPSO) on order, and unlike a year ago, these — and not floating liquefied natural gas (FLNG) — are the unheralded story. Driven by a decent price for oil, this buoyant market is kept strong by new players, new business models and the now solid realization that FPSOs can cost less than new, jacketed oilfield development. Most of all, nations are again asking industry to concentrate capital and rein in remote-area wealth.

JANUARY/FEBRUARY 2020 OFFSHORE ENGINEER 33