September 10, 2001


DECLINING COST OF FLOATING PRODUCTION DRIVING DEMAND FOR NEW SYSTEMS

Floating production is the most dynamic sector of the offshore oil and gas industry.  More than 120 floating production systems are currently in operation worldwide and, with 40 more units on order and more than 150 new projects under consideration, there is no indication that any slowdown in new activity is taking place.  
Driving demand for new floating production systems is the declining unit cost of new installations.  In less than ten years, the cost of a large TLP installation has dropped 50 to 60 percent and, according to Shell, the future cost trend is definitely downward.
            Source:  Shell
IMA has been preparing reports on the floating production sector since the mid-1990s.  Each report profiles the current inventory and orderbook of floaters, identifies and describes projects in the planning and design stage, examines underlying industry drivers that impact future demand for new systems and looks at technology and corporate developments in the sector.
The 2001-2002 series of three floating production studies will begin in October.  The October report will contain a five-year forecast of requirements for floating production systems.  Subsequent reports in the series will be issued in February and July 2002.

For further information, please contact Jim McCaul at 202-333-8501 or e-mail imaassoc@msn.com. Details for our reports series on floating production can be obtained by clicking here