Offshore staff
CANTERBURY, UK –Douglas-Westwood’s new “World Floating Production Market Report”forecasts that between 2014 and 2018 $99 billion will be spent on floating production systems (FPS) – an increase of 138% over the preceding five-years.
Deepwater FPS deployments are expected to total $68 billion and account for more than two-thirds of the total spend.
The long-term growth is underpinned by continuing deepwater developments as well as marginal fields and fasttrack/short term deployments.
The FPS sector recovery following the 2008/2009 downturn is steady. A total of 54 units were ordered in 2011-2013 compared to 23 units ordered during 2008-2009. There has been little growth in the annual value of installed units over the last four years; however, 2014 is expected to show a significant increase in the value of units deployed.
Utilization of FPSOs owned by leasing contractors has also improved since the last report, up three percentage points to 88%.
FPSOs form the largest segment of the market (80%) both in terms of units installed and forecast capex over 2014-2018. Latin America accounts for 29% of the 139 installations forecast and 38% of the projected capex.
The failure of Brazilian operator OGX in 2013 and the slow-down in overall upstream expenditure in 2014 will impact the market in the near-term.
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