Market Signals Fast Rebound in Floating Production Orders

Wednesday, April 28, 2021

The deepwater market is rapidly returning to pre-COVID-19 activity levels, and the recovery appears to be gaining strength, according to a recent in-depth analysis completed by International Maritime Associates (IMA) and World Energy Reports (WER).

“Lots of green shoots have appeared,” says Jim McCaul, head of IMA/WER. “Oil inventory has been brought down to seasonal average, crude remains in the mid-$60s, bullish forecasts are being heard from key industry players and an upward trend in issuance of equity and debt by major upstream companies suggests E&P spending is returning.”

Driving momentum are production curtailments by OPEC+ and rising oil consumption as the global economy unevenly emerges from the COVID crisis. The result is a rebound in the production floater market. Four production floater contracts have been placed since beginning of the year and contracts for approximately 20 more units are poised to more forward over the next 18 months, McCaul says.

“The production floater supply chain has been starved for work since upstream operators abruptly stopped spending on capital projects last year. Management has been under huge pressure by investors to focus on building cash reserves,” McCaul says. “With the market rebounding, our recent discussions with key operators shows a growing intent to refocus on developing new production sources.”

McCaul adds, “The need to replace reserves will trump cash accretion as the global economy comes roaring out of the pandemic over the next 12 to 18 months.”

IMA/WER’s floating production report has up-to-date details for more than 200 floater projects in the planning stage. Around 55% of these envisage use of a floating production, storage and offloading unit (FPSO). Another 10% will require a production semi. The rest are liquefied natural gas (LNG) and floating storage projects. The report also has details for 44 production or storage floaters on order, 308 floating production units in service and 43 production floaters available for redeployment contracts.  


For more information about the IMA/WER report and database, visit www.worldenergyreports.com or contact Rob Howard at +1 561 732 4368 or Bailey Simpson at +1 832 289 5646.

Categories: Offshore FPSO Production Floating Production

Related Stories

Petrovietnam, Petronas Extend PSC for Offshore Block

CNOOC Starts Production at Two New Oil and Gas Projects

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

ONGC and BP Sign Deal to Boost Production at India's Largest Offshore Oil Field

Japan's Mitsui Eyes Alaska LNG Project

China's CNOOC Aims for Record Oil and Gas Production in 2025

CNOOC Boosts Dongfang Gas Fields Output with New Platform Coming Online

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Current News

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com