Page 28: of Offshore Engineer Magazine (Jan/Feb 2023)

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FEATURE FLOATING PRODUCTION SYSTEMS

Nothing inspires confidence in the energy markets like a high price per barrel, and a rebound to the $80-$100 range following six years in the doldrums is welcome news for the floating production sector, which are deep water, long-term, and expensive projects. 2022 was a banner year for the Floating Production sector, and ’23 is shaping up even better, with IMA/WER projecting orders for 9 to 11 FPSOs, a few FLNGs and a handful of

FSRUs, too. But while prospects are bright, a number of hurdles – from a dearth of qualified contractors to the energy transition to heightened environmental regulation – could put the sector back on ice.

By Greg Trauthwein il prices in excess of $80/barrel, and the ex- [https://www.oedigital.com/news/502185-exxon-set-to- pectation that they will hold ?rm or rise in order-?fth-guyana-fpso-sizing-up-more-blocks] the near future, has helped to drive a strong This comes as global in?ation takes a heavy toll, with recovery in the deep water sector and bright- the latest development expected to cost about 27% more ened prospects for capital expenditure for than the last, which is due both to in?ation and the in-

O ?oating production systems, an energy segment that was creased size of the project. on life support only a few years ago. The company’s proposed ?fth development, at an oil-

While oil majors are still holding back on major increases ?eld called Uaru, would pump about 250,000 barrels of in capital spending, “this is changing,” said Jim McCaul, oil per day at peak, for a development that is estimated to

IMA/WER, who has analyzed the ?oating production busi- cost about $12.68 billion, according to an estimate pre- ness since 1995 and recently released Annual Review and pared for Guyana’s EPA. Exxon has submitted a develop-

Five-Year Forecast of Orders for Floating Production System. ment plan for the oil?eld, and an initial construction con- “Oil prices have risen to levels that support investment tract was awarded last fall to Japan’s Modec. This will mark in new facilities and capex budgets are slowly expanding. Modec’s debut in Guyana.

The pro?t opportunities are too great to pass up.” Exxon and its partners Hess and CNOOC Ltd. inau-

Most recently, Reuters reported that Exxon Mobil was gurated Guyana’s production in 2019 and today deliver preparing to approve its ?fth oil production project in all the oil output in the country, from its 10,347 sq. m.

Guyana and is considering taking additional exploration Stabroek block, via two FPSOs, the Liza Destiny and Liza acreage, according to a Reuters report on OEDigital.com. Unity, both supplied by SBM Offshore.

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