LogIn LogOut

Floating Production Systems Market Bounces Back on Recovering Oil Prices

April 2, 2021

Illustration only - Credit: Igor Kardasov/AdobeStock
Illustration only - Credit: Igor Kardasov/AdobeStock

Orders for production floaters have bounced back over the past month driven by rising crude prices, according to Jim McCaul, head of offshore business intelligence firm World Energy Reports.

McCaul bases his assessment on data in a new floating production systems report prepared by World Energy Reports. The report provides details for 206 floater projects in the planning stage, 44 production or storage floaters now on order, 307 floating production units currently in service and 44 production floaters available for redeployment contracts.

As detailed in the report, three production floaters have been ordered since late February. BW Offshore received a contract to supply the Barossa FPSO, SBM Offshore signed an LOI to supply the Buzios #6 FPSO and CNOOC/Cenovus ordered a new-build production barge to use on a gas field offshore Indonesia.  

According to McCaul, the ordering activity is driven by crude prices trading in the $60s, “reflecting the gradual recovery of global oil demand and OPEC+ curtailment of oil supply”. 

McCaul further points out that “crude inventory has been creeping higher and the US crude inventory is now 6% above seasonal levels.”

Despite identifying a few negative influences, such as continuing concerns over government interference at Petrobras which resulted in board resignations, McCaul added that “there continues to be wide expectation that global oil demand will rebound sharply over the next few years as the Covid crisis recedes into the past”.  


For more information about the Floating Production report and database, please visit www.worldenergyreports.com or contact Bailey Simpson in the USA at +1 832 289 5646.



Current News

Boskalis Serves MMHE with Arbitration Notice, Seeking $12M for Bokor Project Delays

Boskalis Serves MMHE with Arbitration Notice, Seeking $12M for Bokor Project Delays

Emperor Energy Buys Judith Field Seismic Data. Gets More Time to Find Drilling Partner

Emperor Energy Buys Judith Field Seismic Data. Gets More Time to Find Drilling Partner

China: CNOOC Searching for Three Missing After Fire on Offshore Platform Doused

China: CNOOC Searching for Three Missing After Fire on Offshore Platform Doused

Velesto Secures 7-well Drilling Deal with Shell in Malaysia

Velesto Secures 7-well Drilling Deal with Shell in Malaysia

Australia: Santos Looking to Sell Down Stake in Dorado Offshore Oil Project

Australia: Santos Looking to Sell Down Stake in Dorado Offshore Oil Project

In Break with Rivals, Oxy CEO Says Carbon Tax Would be 'Bad'

In Break with Rivals, Oxy CEO Says Carbon Tax Would be 'Bad'

Chevron, Hokkaido Gas Ink LNG Supply Deal

Chevron, Hokkaido Gas Ink LNG Supply Deal

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