Capex on global FPSO projects to total $8,332m in 2013

Tuesday 10 September 2013, Amsterdam

By the end of this year global capital expenditure on new-build and converted floating production, storage and offloading (FPSO) vessels will reach $8,332m, according to this new report, The Floating Production, Storage and Offloading (FPSO) Market 2013-2023.

The lead analyst commented “The market for FPSOs is picking up after the difficult years that followed the financial crisis’, ‘After 2009 the sector suffered from tight financing as much as reduced demand for oil from the developed economies. Though project financing still represents a hurdle for new FPSO orders, the market is currently benefitting from E&P developments offshore Brazil and West Africa in the so-called pre-salt regions. With the rate of new onshore discoveries declining, oil prices likely to remain high and economic growth gradually resuming globally, the FPSO market as a whole will see a period of unprecedented growth in the short-term.”

According to the report, the development of the FPSO market will differ on a regional basis. South America and West Africa are the regions that will see the strongest growth in the short run, thanks to heavy investments in the pre-salt area. At the same time, Asia will offer good opportunities for smaller FPSO projects, with Vietnam, Malaysia and Indonesia among the most inviting markets. Other regions will struggle in the longer term, most notably Europe.

The report also highlights how the market for new-build and converted FPSO vessels will develop over the next ten years. ‘The economics of new-builds and conversions are different’, said our lead analyst. ‘The decline of existing fields and the rate of new discoveries will play a decisive role in deciding which submarket will be more resilient over the long term.’

The report contains 148 table, graphs and charts that add visual understanding to the analysis of the floating production, storage and offloading (FPSO) market, together with forecasts for the 2013-2023 period on global and regional CAPEX, and future investments in nine crucial leading national markets. In addition, the report analyses the five most important companies for FPSO CAPEX in 2012, providing crucial market share data. The report also profiles a further 28 leading companies and includes the full transcripts of exclusive interviews with Yasuhiro Takano, General Manager of Corporate Planning & Strategies at MODEC, and David Munday, Director of Business Development at Rubicon Offshore International.