Floating production market set for revival in 2017
Analyst Douglas-Westwood foresees an upturn in floating production system activity over the coming year.
FAVERSHAM, UK – Analyst Douglas-Westwood (DW) foresees an upturn in floating production system activity over the coming year.
Following a period of 18 months since the last new floater order, contracts will likely be issued forHurricane’s Lancaster development west of Shetland, ExxonMobil’s Liza offshore Guyana, Petrobras’ Libra and Sepia fields in the presalt Santos basin, and BP’s Mad Dog 2 in the Gulf of Mexico (a semisubmersible).
Based on project-by-project tracking of individual fields, DW anticipates an additional 1.2 MMb/d of supply in 2017 from offshore production.OPEC needs to stick to its cuts to avoid a substantial overhang of production capacity and likely downward pressure on oil prices, the analyst adds.