FPSO demand should recover, Prosafe predicts

No new FPSO contracts have been issued so far this year, according to Prosafe Production, and the number of enquiries from oil companies is at a low level amid difficult credit conditions.

Offshore staff

LIMASSOL, Cyprus --No new FPSO contracts have been issued so far this year, according to Prosafe Production, and the number of enquiries from oil companies is at a low level amid difficult credit conditions.

But the long-term outlook remains favorable for the FPSO industry, the company claims in its latest quarterly review. The decline rate of producing oil fields is high, and set to rise further over the coming years. So the industry will need to keep bringing new fields on stream rapidly to lift output.

This situation should benefit the FPSO concept, Prosafe believes, as the concept is well suited for field developments in deep water and remote regions and on marginal fields.

During the first three months of the year, the company had three conversion projects in progress. Of these, the FPSOCidade de Sao Mateus has been on station at Petrobras' Camarupim field off the coast of Espirito Santo since March, but first gas has not been delivered due to circumstances which Prosafe claims are beyond its control. It is in discussions with the client concerning start-up proceedings.

Load-out of theNingaloo Vision, ordered by Apache Australia, was delayed by an electrical fire in April, causing damage to some equipment. The vessel should now sail away from the yard this summer.

05/14/2009

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