Page 14: of Offshore Engineer Magazine (Jan/Feb 2025)

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CLASSIFICATION FPSOs © Wolfborn Indiearts/AdobeStock

FPSO MARKET 2025:

DEMAND STEADY, PRICES SOAR

As a leading classification society for Floating Production Storage and

Offloading vessels (FPSOs), the American Bureau of Shipping knows a thing or two about the trends driving future generation of these mammoth, capital-intensive units. Offshore Engineer was in Houston last month and met with Matt Tremblay, Vice President, Global

Offshore at ABS, for his insights on drivers for the market in 2025 and beyond, from new designs to digitalization’s evolving role in maintenance.

are the backbone of offshore oil and “The year is front-loaded with Brazil’s activity,” says gas production discovery and recov- Tremblay. “We expect around four to six FIDs in both the

FPSOs ery, providing a bridge between deepwater reservoirs and ?rst and second halves of 2025, with the majority leaning global energy markets. Today the oil and gas industry as a toward new construction. However, some conversions will whole faces consistent and sometimes rapid shifting land- still play a role.” scape in terms of economics, technology and sustainability.

According to Tremblay, the FPSO market in 2025 is ex- NEW CONSTRUCTION VS. CONVERSION: pected to remain stable, with 10 to 12 offshore production SHIFTING DYNAMICS projects reaching ?nal investment decisions (FIDs)—a Traditionally, FPSO conversions—modifying existing continuation of 2024 trends. Brazil remains a focal point, tanker hulls for offshore production—offered a cost-effec- with Petrobras leading signi?cant developments, including tive and faster alternative to new builds. However, the in- the Petrobras 86 project and SEAP 1 and SEAP 2 FPSOs. dustry has seen an increasing tilt toward new construction,

Shell’s Gato do Mato project is also anticipated to move with 80% of projects in 2024 being newly built.

forward early in the year. This trend is fueled by major players such as Exxon and 14 OFFSHORE ENGINEER OEDIGITAL.COM