The global FPSO market is currently experiencing significant growth owing to exploration success in new areas, such as Namibia's Orange Basin and the East Mediterranean, continued capital spending by oil majors on exploration in deepwater, depleting onshore oil fields, and rising global oil and gas prices.
Furthermore, the increasing energy demand, coupled with the ability of FPSOs to function without a fixed structure, the capability of storage, and offloading oil, is augmenting the demand for FPSOs globally.
The term floating production storage and offloading (FPSO) refers to a vessel that is situated close to an offshore oil field and serves as a processing and storage facility for crude oil up until the point at which it can be transferred to a shuttle tanker for transportation to a different location for further processing.
In newly formed offshore fields without pipeline infrastructure or in remote areas where constructing a pipeline would be prohibitively expensive, FPSOs are particularly helpful. A tanker doesn't have to wait while the production facility produces enough oil to fill it, due to the utilization of FPSOs. The ability to relocate the floating production storage and offloading vessel to a new place when an oil field has run out is another benefit of FPSOs versus pipelines.
FPSOs are appropriate for a variety of water depths (deepwater, and ultra deep water) and environmental conditions and can be built to remain in a specific location for up to 20 years of continuous operation. FPSOs are currently the crude oil industry's preferred offshore production technology due to their increased flexibility and adaptability.
The rapid recovery of the oil and gas industry post-Covid-19 pandemic downturn and increasing investments in deep water exploration and production activities due to the energy security issues triggered by the Russian-Ukraine conflict are currently driving the demand for FPSOs globally.
However, the high capital requirement, long building periods, and the development of offshore pipeline infrastructure might restrain FPSO market growth.
The growing Brazil FPSO market was a major driver of growth for the South America FPSO market, with seven of the country's 10 contract awards coming from Brazilian projects in 2021. With the addition of three more FPSOs in 2022, the South American country is a leading nation in global FPSO contract awards.
Guyana, a participant in the South America FPSO market, added one FPSO to the global total in 2022, while the UK added two projects. It is anticipated that Angola, Australia, China, and Malaysia will all award one new FPSO contract.
In terms of FPSO building, China takes the lead. In the past, the major drydocks in South Korea, such as Samsung, Daewoo, and Hyundai, were the primary builders of large and intricate FPSOs. However, they have been overtaken by Chinese shipyards, which have outperformed them in terms of pricing and delivery speed.
In the conversion segment of the market, Singaporean yards like Sembcorp and Keppel used to dominate, but they are now encountering formidable competition from Chinese counterparts as well. This shift in the competitive landscape highlights China's growing prominence in the global FPSO industry, both in terms of new construction and conversion projects.
Due to the COVID pandemic, the major under-construction projects to build floating production, storage, and offloading (FPSO) vessels were delayed in China, South Korea, and Singapore owing to staffing and supply shortages.
However, capacity constraints in China, the primary destination for FPSO construction and conversion, could lead to delays and competition for resources. Additionally, technological advancements, environmental concerns, and regulatory changes are shaping the industry's landscape.
The new report on the Global Floating Production Storage Offloading FPSO Market comprehensively analyzes the FPSO market dynamics and provides deep insight into the current and future state of the industry.
The study examines the drivers, restraints, and regional trends influencing global FPSO market demand and growth.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the global FPSO market, as well as important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players.
Further, the report will also provide global FPSO market CAPEX, demand forecasts, and growth rates.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will functions as a guide for you to analyze the degree of impact.
This section provides an assessment of the COVID-19 impact on global floating production storage and offloading market demand.
Using Porter's five forces framework, the report covers an assessment of the global FPSO industry's state of competition and profitability.
Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
In addition, global market capex (size), demand forecast, and growth rates will be provided for all regions.
The study also discusses the strategies adopted by leading players in the industry.
The report begins with an executive summary chapter and ends with conclusions and recommendations.
This product will be delivered within 3-5 business days.
Furthermore, the increasing energy demand, coupled with the ability of FPSOs to function without a fixed structure, the capability of storage, and offloading oil, is augmenting the demand for FPSOs globally.
The term floating production storage and offloading (FPSO) refers to a vessel that is situated close to an offshore oil field and serves as a processing and storage facility for crude oil up until the point at which it can be transferred to a shuttle tanker for transportation to a different location for further processing.
In newly formed offshore fields without pipeline infrastructure or in remote areas where constructing a pipeline would be prohibitively expensive, FPSOs are particularly helpful. A tanker doesn't have to wait while the production facility produces enough oil to fill it, due to the utilization of FPSOs. The ability to relocate the floating production storage and offloading vessel to a new place when an oil field has run out is another benefit of FPSOs versus pipelines.
FPSOs are appropriate for a variety of water depths (deepwater, and ultra deep water) and environmental conditions and can be built to remain in a specific location for up to 20 years of continuous operation. FPSOs are currently the crude oil industry's preferred offshore production technology due to their increased flexibility and adaptability.
The rapid recovery of the oil and gas industry post-Covid-19 pandemic downturn and increasing investments in deep water exploration and production activities due to the energy security issues triggered by the Russian-Ukraine conflict are currently driving the demand for FPSOs globally.
However, the high capital requirement, long building periods, and the development of offshore pipeline infrastructure might restrain FPSO market growth.
Drivers
Increasing Spending by Oil Majors in Offshore Exploration and Production
According to the report, exploration companies are currently giving precedence to the offshore sector as they seek to discover new resources. Their focus is on capitalizing on underexplored or frontier areas in order to access untapped reserves, even if it involves high-risk and higher-cost offshore developments. The offshore industry has absorbed approximately 95% of exploration spending in the current year so far. However, it's noteworthy that it has accounted for only about two-thirds of the volumes that have been discovered.Restraints
Long Building Periods due to Limited Shipyard Capacity
The FPSO market faces constraints due to limited shipyard capacity, causing delays and cost concerns. Intense competition for yard space with other construction projects exacerbates these challenges. In response, some E&P companies are revising their FPSO procurement strategies, focusing on early planning, exploring alternative yards, and implementing flexible contracts. These measures aim to mitigate the risk of delays and cost overruns while ensuring timely and cost-effective FPSO deployment in a competitive offshore energy sector.Regional Analysis
South America, Asia-Pacific, and West Africa are the major regions that are expected to dominate the global FPSO market during the forecast period.The growing Brazil FPSO market was a major driver of growth for the South America FPSO market, with seven of the country's 10 contract awards coming from Brazilian projects in 2021. With the addition of three more FPSOs in 2022, the South American country is a leading nation in global FPSO contract awards.
Guyana, a participant in the South America FPSO market, added one FPSO to the global total in 2022, while the UK added two projects. It is anticipated that Angola, Australia, China, and Malaysia will all award one new FPSO contract.
In terms of FPSO building, China takes the lead. In the past, the major drydocks in South Korea, such as Samsung, Daewoo, and Hyundai, were the primary builders of large and intricate FPSOs. However, they have been overtaken by Chinese shipyards, which have outperformed them in terms of pricing and delivery speed.
In the conversion segment of the market, Singaporean yards like Sembcorp and Keppel used to dominate, but they are now encountering formidable competition from Chinese counterparts as well. This shift in the competitive landscape highlights China's growing prominence in the global FPSO industry, both in terms of new construction and conversion projects.
Impact of COVID-19
COVID-19 and the falling oil price were a double blow for the FPSO industry, which was suffering the aftershocks of a turbulent market. To keep costs down, FPSO production businesses concentrated primarily on transforming existing tankers into FPSOs.Due to the COVID pandemic, the major under-construction projects to build floating production, storage, and offloading (FPSO) vessels were delayed in China, South Korea, and Singapore owing to staffing and supply shortages.
Current Scenario
The global FPSO market looks strong amid current market conditions, with strong demand for floating production storage and offloading units driven by the need to tap offshore oil and gas reserves. Brazil and Guyana continue to dominate the market, with numerous projects expected in these regions. Namibia is emerging as a new hotspot, signifying the industry's exploration of untapped regions.However, capacity constraints in China, the primary destination for FPSO construction and conversion, could lead to delays and competition for resources. Additionally, technological advancements, environmental concerns, and regulatory changes are shaping the industry's landscape.
Segment Analysis
In the prevailing circumstances, converted vessels hold a prominent position in the market, primarily due to the speed advantage they offer. In an industry prone to oil price fluctuations, the ability to swiftly tap into oil reserves is a critical driving force. Conversion enables operators to realize faster returns on their capital investments, making it a favored choice for addressing the industry's demand for agility and profitability.Recent Key Developments
- In October 2023, Altera Infrastructure secured contracts for the redeployment of both the FPSO Voyageur Spirit and the shuttle tanker Nordic Brasilia as part of the Baleine Phase 2 project situated off the coast of Ivory Coast. These vessels are slated for deployment in the Baleine field under a firm 15-year contract agreement.
- Norwegian FPSO operator BW Offshore has inked a fresh USD 200 million, three-and-a-half-year facility agreement, effectively refinancing its current senior secured credit facility for a floating production storage and offloading (FPSO) vessel operating in the UK sector of the North Sea.
- BW Offshore has successfully completed the transaction to sell the Abo FPSO to STAC Marine Offshore Limited, which is a part of the Nigerian Transport Group (STAC), for a total of USD 20 million.
- Aker Solutions has secured a significant contract from Altera Infrastructure for the comprehensive upgrade of the Petrojarl Knarr floating production storage and offloading vessel (FPSO). This FPSO is slated for redeployment at Equinor's Rosebank field development, located offshore in the UK.
- SBM Offshore and Mitsubishi Heavy Industries (MHI) have entered into a partnership agreement in September 2023 to provide a CO2 capture solution tailored for Floating Production Storage and Offloading vessels (FPSO).
- In Nigeria, BW Offshore was able to get a lease extension for the FPSO Sendje Berge, which is used by Addax Petroleum Exploration (Nigeria) Ltd., that lasted until the fourth quarter of 2022.
- In Dec 2022, Brazilian oil and gas giant Petroleo Brasileiro S.A. (Petrobras) started the process of contracting for two floating production storage and offloading (FPSO) production units for the shared reservoirs of the Atapu and Sépia deepwater oil fields located in the Atlantic Ocean.
- Petrobras, Brazil's federal oil company, announced its new business plan, which includes an investment of USD 20 billion for new FPSO projects. The oil company plans to acquire 18 new FPSOs by 2027, 11 of which will be chartered, six will be owned, and one will not be operated. In the 2022-2026 plan, 15 FPSOs - nine chartered and six owned - were expected to begin operations.
- ExxonMobil Guyana and Dutch FPSO operator SBM Offshore have signed a Memorandum of Understanding (MOU) to build an FPSO for ExxonMobil Guyana's Stabroek Block field off the coast of Guyana. The new FPSO vessel will have a total oil production capacity of more than 1 million barrels per day.
- In Oct 2022, Sembcorp Marine finished building a sizable new FPSO unit that will be used by Petrobas in Brazil in the Itaipu field. Up to 150,000 barrels of oil and 6 million cubic meters of natural gas per day (BPD) are anticipated to be produced for Petrobas, which will be in operation through the year 2050.
The new report on the Global Floating Production Storage Offloading FPSO Market comprehensively analyzes the FPSO market dynamics and provides deep insight into the current and future state of the industry.
The study examines the drivers, restraints, and regional trends influencing global FPSO market demand and growth.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the global FPSO market, as well as important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players.
Further, the report will also provide global FPSO market CAPEX, demand forecasts, and growth rates.
What Do We Cover in the Report?
Global FPSO Market Drivers & Restraints
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will functions as a guide for you to analyze the degree of impact.
Global FPSO Market Analysis
This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.This section provides an assessment of the COVID-19 impact on global floating production storage and offloading market demand.
Global FPSO Market CAPEX and Demand Forecast
The report provides global FPSO market CAPEX and demand forecasts until 2028, including year-on-year (YoY) growth rates and CAGR.Global FPSO Industry Analysis
The report examines the critical elements of the global FPSO industry supply chain, its structure, and the participants.Using Porter's five forces framework, the report covers an assessment of the global FPSO industry's state of competition and profitability.
Global FPSO Market Segmentation & Forecast
The report dissects the Global Floating Production Storage and Offloading (FPSO) Market into various segments based on construction type (new build ship, converted ship/hull), water depth (shallow water, deep water, ultra deep water), and hull type (single hull, double hull).Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
Regional Market Analysis
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.In addition, global market capex (size), demand forecast, and growth rates will be provided for all regions.
Following are the notable countries covered under each region:
- North America - United States, Canada, Mexico, and the Rest of North America
- Europe - The United Kingdom (UK), Denmark, Norway, Russia, and the Rest of Europe
- Asia Pacific - China, India, Japan, South Korea, Australia, and the Rest of APAC
- South America - Brazil, Venezuela, Guyana, and the Rest of South America
- Middle East & Africa - Nigeria, South Africa, and other countries
Key Company Profiles
This report presents detailed profiles of major market players in the global FPSO industry. Some of the major companies covered are Bumi Armada Berhad, BW Offshore Limited, SBM Offshore NV, etc. Generally, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.Competitive Landscape
The report provides a comprehensive list of notable companies in the global market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.The study also discusses the strategies adopted by leading players in the industry.
Executive Summary
The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.The report begins with an executive summary chapter and ends with conclusions and recommendations.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Modec Inc.
- SBM Offshore
- BW Offshore Ltd.
- Bumi Armada Berhad
- MISC Bhd
- Yinson Holdings Bhd
- Altera Infrastructure
