May 18, 2022

Record Number of Floating Production System Awards



November 1, 2021

Credits: Ranimiro/AdobeStock

Around 30 floating production contracts are now awaiting award over the next 18 months, assuming no major market disruptions occur and the supply chain can absorb orders within that timeframe. This is the conclusion of an in-depth analysis of the market which has just been carried out by IMA/WER.

The market surge is being fueled by crude prices that have soared into the mid-$80s on the back of rapidly growing oil demand, OPEC+ supply constraints and inadequate investment by upstream players to replace the production.

According to Jim McCaul, managing director of IMA/WER, “the deepwater production market has become very hot. The queue for short-term projects has increased every month since the first quarter. We now see 25 FSPO and 5 FPU contracts pending award by early 2023.”

McCaul said: “The main constraint on short-term production floating orders is not market demand – it’s the ability of the supply chain to absorb 30 new contracts over the next 18 months without costs and delays are exploding.”

IMA/WER’s Floating Production Report contains up-to-date details and contract status for over 200 floating projects in the planning stage. About 55% of them plan to use an FPSO. Another 10% will require semi-production.

The others are LNG and floating storage projects. The report also details 45 production or storage floats on order, more than 300 production floating units in service and 40 production floats available for redeployment contracts.

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For more information, please visit www.worldenergyreports.com or contact Rob Howard at +1 561 732 4368 or Phil Lewis at +44 203-966-2492