LONDON – Visiongain calculates the global capex on newbuild and converted FPSOs will be $8.65 billion this year.
TheSouth American and West African regions will see the highest investments due to recent ultra-deepwater presalt discoveries. Other regions such as Southeast Asia have potential as more countries strive to balance diminishing onshore output with the development of new offshore reservoirs.
This level of capex is predicted based on the low rate of onshore discoveries and technological advances enablingdeepwater and ultra-deepwater exploration and production.
Going forward, however, Visiongain expects the drop in oil prices and the completion of current FPSO application work will change market dynamics and reduce growth starting in two years. Even so, the market will attract “significant spending” for the next 10 years so long as oil prices remain high enough to warrant investments.