Oil price puts brake on FPSO activity
Douglas-Westwood says the lower oil price has impacted investments in FPSOs.
FAVERSHAM, UK – Douglas-Westwood (DW) says the lower oil price has impacted investments in FPSOs.
So far this year only three contracts have been awarded, with a total value of around $1.5 billion.
One is a conversion for theSankofa-Gye Nyame development offshore Ghana; the others are a small conversion job in Iran and an upgrade in Indonesia.
During the first half of last year, twice as many orders were placed with a combined value 528% higher, led by the conversion of two FPSOs for theKaombo project off Angola.
DW says the current situation reinforces the view that operators are more focused on bringing down costs down and waiting for a recovery in oil prices before commissioning major new projects.
The analyst forecasts four more awards later this year, with potentially five more if the oil price rebounds.
Longer-term FPSOs will remain vital for development of oil and gas fields in deeper waters as well as for marginal fields in mature regions, DW points out, and it maintains that during 2015-19, floaters with a total value of $60 billion will be installed, with more than 130 potential future deployments.