FPSO orders resume with US$12Bn in awards

Commenting on the state of the market, EMA managing director David Boggs said, “From mid-2023, there was a dearth of large FPSO awards as there was limited capacity and companies adjusted to new pricing realities throughout the offshore sector.”

“As expected, orders resumed in May 2024, with the most expensive FPSOs ever ordered at over US$4.0Bn. Seatrium was the only bidder for these two massive units for Petrobras. This sets a new bar and shows the limited capacity in the market.”

Additional floating production orders are expected in the second half of this year and leading into 2025.

The consultant said it has identified 29 projects that are most likely to be awarded within the next 12 months including 16 FPSOs, seven FSOs, three FLNGs, two semis, and one MOPU. These will be for multiple units in Brazil, frontier regions such as Namibia and the Falklands as well as the re-emergence of mature areas such as Angola, Indonesia, Ivory Coast and Malaysia. According to EMA, more than half of these orders would be leases.

Mr Boggs said, “Additional competition may be attracted at these price levels. The fundamentals of the floating production sector remain strong with a large number of developments in the planning pipeline.”

“While financing remains a challenge, particularly for leased assets, alternative sources of capital, including bonds and private equity, are available and interested in the long-term, infrastructure nature of floating production contracts.”   

Seatrium also clinched an integration contract from SBM Offshore for the topside fabrication and integration of FPSO Jaguar. Work is expected to commence in Q3 this year. When completed, Jaguar will be deployed to serve in the Whiptail Field, off Guyana. The contract value was not disclosed.

OSJ readers will recall that the Singapore yard has delivered three FPSO projects for Guyana’s oil-rich fields. Liza Destiny, Liza Unity, and Prosperity are all currently active, working for oil major ExxonMobil in the Caribbean nation. The Singapore firm is also on track to deliver its fourth Guyanese FPSO project (named One Guyana to SBM Offshore) which is also set to work for ExxonMobil. 

EMA’s Q3 2024 Floating Production Systems Report covers 177 projects in the planning pipeline, 52 production floaters and eight storage floaters currently on order, 23 units currently available (14 FPSOs, three semis, two FSOs, two FSRUs, one barge, and one SPAR), 345 production floaters and 114 storage floaters currently in service or available. 414 production floaters, 190 storage floaters, and 24 MOPUs have been delivered or redeployed since 1996.

EMA’s comprehensive report is available here. 

Riviera’s Offshore Support Journal Conference, Asia will be held in Singapore, 17-18 September 2024. Click here for more information on this industry-leading event.