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 News Release
  March 19, 2008

 

130 to 158 Additional Floating Production Systems
Required Over Next Five Years

 

Floating production is growing at an accelerating pace. There are now 212 floating production systems in operation worldwide - 21/2 times the number of units operating ten years ago. Another 65 systems are on order, including 14 being built on speculation. Most important, more than 130 projects potentially requiring a floating production system are in the planning stage.   

212 Production Floaters Now Operating — The current inventory consists of 131 FPSOs, 40 production semis, 21 TLPs, 15 spars and 5 production barges. They are producing on fields offshore West Africa, Northern Europe, US Gulf Coast, Brazil, Southeast Asia, China and Australia/New Zealand. Another 86 floating storage vessels (without production capability) are now in service, primarily in Southeast Asia, West Africa and the North Sea.

65 Production Floaters On Order — Backlog of production floaters continues to grow. The number of units on order is 40 percent higher than two years ago, 75 percent higher than five years ago. Current backlog consists of 46 FPSOs, 9 production semis, 1 TLP, 3 spars, a production barge and a ship shape FPU and 4 FSRUs. In addition, 10 FSOs are now being built or converted.

 

Order Backlog Up More Than 75%
From Five Years Ago

130+ New Projects Being Planned — In a just published study, U.S. consulting firm IMA describes 134 offshore projects in the planning pipeline that potentially require floating production systems. Some projects require multiple systems. 29 percent of these projects are at the bidding or final design stage, 71 percent are in the concept development or study phase. According to Jim McCaul, head of IMA, "there is a very strong likelihood that 50 to 75 percent of these projects will actually materialize into equipment fabrication contracts within the next three to five years and another large number of floater projects will undoubtedly surface over the next several years that are not currently on the radar screen." 

 

Floater Projects Planned or Under Study

Up to 158 New Floaters Required Over the Next Five Years — Given the strong underlying market fundamentals, IMA's new forecast calls for 130 to 158 production floater orders between 2008-2013. According to McCaul, "in the 12 years since IMA has been tracking the production floater market, the fundamentals driving the sector have never been stronger. Crude futures are trading above $100, global oil demand is growing at more than 2 percent, oil supply is tight and threat of supply disruptions overhang the market. Deepwater development has been limited only by availability of drill equipment - and these constraints are about to be lifted as 80 new drillship/rigs come into service over the next few years. Floating production is clearly on the accelerating part of the growth curve."

Details in IMA's March Floater Report — IMA has just issued an in-depth analysis of the floating production market. The 170 page report provides details for production and storage floaters now in service, profiles all of the known floater projects in the planning pipeline and provides a five year forecast of production floater and storage unit orders. This report is a continuation of a series of reports on the floater market that IMA began in the mid 1990s. The reports, issued at four month intervals, have become a popular reference source in the floater sector.


contact Jim McCaul

tel:  001-832-203-5622 (Houston)
      001-202-415-8501 (Washington)

email:  imaassoc@msn.com