Floating Production Systems (FPS) Market Outlook to 2028

Floating production systems are capable of producing, processing, storing and offloading of oil and gas that comes from sub-sea oil wells or platforms driven by Stable crude oil prices, followed by enhanced project economics and increasing production from existing fields.

Oil and gas companies continue to flow investments, into offshore Greenfield and brownfield oil and gas projects will drive the market growth. Growing recognition of the role of gas and LNG to tackles poor air quality and climate change is driving gas consumption across the globe. Thereby boosting investment in LNG E&P projects to meet long-term demand growth, consequently driving the FLNG vessels demand.

Offshore fields with reserves in regions such as Brazil, Australia, and East Africa are anticipated to drive future investment. In the long-term, gas is expected to become a bigger portion of the global energy mix, requiring new investments into the upstream industry. Middle East growth continues to offer opportunities to the floating production systems market with high volumes of activity. Stronger oil and gas companys balance sheets and liquidity positions are strengthening, providing capacity to increase capital and operational expenditure.

The competitive landscape has reacted to the lower oil price environment in the form of alliances and consolidation to achieve economies of scale and wider control of the value chain.

Lower crude oil prices impact directly offshore and hence floating production system projects directly. Therefore volatility in the prices will likely act as a restraint to this market.

The global floating production systems market is segmented based on type. By type, market is divided into Semi-Submersible Platforms, Tension-Leg-Platforms (TLP), SPAR Platforms, Floating liquefied natural gas (FLNG), and Floating Production Storage and Offloading (FPSO). Furthermore, the market is segmented by geography into North America, Europe, Asia Pacific, South America, and Middle-East & Africa.

Brazil is home to some of the best deep-water opportunities in the world. Moving ahead, Petrobras and other oil and gas companies to progress additional development plans. Brazil is anticipated to witness demand for floating production system over the next following years. Factors that are driving the demand includes, the large number of deepwater projects in the planning queue, the expected rebound of Petrobras over the next few years and the future role of international oil companies in Brazil deepwater exploration and development (E&D).

In addition, Brazils National Petroleum Agency (ANP) has approved to lower requirements for the use of locally produced goods and services in oil field development. This development could fast-track the deployment of floating production, storage and offloading (FPSO) units, speeding up the pace of pre-salt oil production by more than 21 billion barrels by the mid-2020.

Recently, Total has announced first oil from the Iara license (Block BM-S-11A), located in the deepwater Santos Basin pre-salt. This marks the start-up of the FPSO P-68. Whereas, the second, P-70, is expected to come on stream in 2020.

On June 2019, Total and its partners made the investment decision for the second phase of the Mero project. The Mero 2 FPSO will have a liquids treatment capacity of 180,000 barrels per day and is expected to start up by 2022. The Mero 1 project, currently under development, is progressing as per plan, with start-up scheduled in 2021. Therefore these prospects to drive the demand growth of floating production systems in the country.


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