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The FPSO market is headed for a boom



The global market for FPSOs is heading for a major renaissance with as many as 24 FPSO awards expected by 2020, according to an analysis from energy consultancy firm Rystad.
The FPSO market is headed for a boom
(Image via Teekay Corporation).

The demand growth for FPSOs is being led first and foremost by South America with 12 sanctioned FPSO projects planned by the end of next year, followed by Asia with four, Europe and Africa with three each, and two more in Australia.

But the standout nation for FPSO activity is Brazil, which is currently experiencing an influx of international E&P companies. By 2020 alone, Brazil is expected to award seven more FPSOs awards, brining their total tally to more than one-third of the awards anticipated globally in 2019 and 2020.

Commenting on the renaissance of the FPSO market, Audun Martinsen, head of oilfield services research at Rystad Energy, said:

“The ongoing upswing in newly sanctioned FPSO projects points to a brighter future for the FPSO market. Offshore operators are finding their footing again after the downturn of 2014, as a robust rise in free cash flow has fuelled a significant uptick in deepwater investments.”

Specifically, regarding Brazil’s buoyant FPSO market Martinsen said:

“Brazil’s greater competitiveness on a global scale is a driver behind such huge FPSO awards, along with the region’s recovery from the Car Wash corruption scandal, Petrobras’ debt reduction, substantial pre-salt discoveries and healthier oil prices. These positive factors also add greater certainty to project timelines, and we no longer believe Petrobras’ developments will be subject to lengthy delays.”
The renaissance of the FPSO market is being led by Brazil which is set to sanction more than one-third of all FPSOs anticipated globally in 2019 and 2020.
(Image via Teekay Corporation).

Brazil’s FPSO boom is largely attributed to a wave of new large investments in deepwater exploration and field development. Another important factor has been Brazil’s recent relaxation of local content regulations, which has attracted new international players to the table.

FPSOs, traditionally used by oil companies for large-scale deepwater projects, are increasingly favoured for a wide range of fields in more shallow waters. FPSO projects are in many cases more practical than alternative platform solutions, primarily due to the installation costs and decommissioning challenges associated with fixed platforms. The built-in storage capacity of FPSOs has also proven to be especially advantageous for remote offshore locations, where pipeline infrastructure is not economically feasible.

With countries such as Brazil relaxing local content laws and a large number of sanctioned FPSO projects on the way, it’s clear there will be a wealth of contract and employment opportunities for technical and engineering professionals across the world.

Work on leading FPSO projects with Fircroft

With offices in all of the major global FPSO design, engineering and fabrication hubs Fircroft is ideally placed to get you your next contract position or job on these forthcoming FPSO projects. Register now and we’ll send you email job alerts as soon as the latest opportunities become available. Alternatively, explore our current opportunities right now.
Tags: Oil & Gas
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