Archive
May 2023 Monthly Floating Production Systems Report
May 22, 2023 - Update
Pullback in crude prices from 2022 highs lowered profits of upstream companies in Q1 2023. But upstream operators are rolling in cash and market sentiment remains very strong, with wide expectations that near term oil demand will continue to grow. There continues to be a deep queue of near-term floating production projects. Thirty-seven floater projects are lined up for an investment decision within the next 18 months, though supply chain tightness and (maybe) financing access will limit the pace of awards. Meanwhile, several major floater contracts were awarded over the past month. Modec received two big contracts -- a large FPSO for Equinor to use offshore Brazil and a large FPSO for ExxonMobil to use off Guyana. SBM contracted with CMHI to build a Fast4Ward hull to have available for use on a future FPSO contract offshore Guyana or Brazil. Golar LNG signed an MOU to supply an FLNG to develop stranded gas resources offshore Nigeria. In all a very active month. All is described in WER's May floater report. Also in the data section of the report are details for 203 floater projects in the planning stage, 73 production or storage floaters now on order, 318 floating production units currently in service and 20 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 May.
April 2023 Monthly Floating Production Systems Report
April 26, 2023 - Update
Financial conditions and business sentiment in the offshore oil and gas sector continue to strengthen. Major upstream contractors have been reporting very strong financial results in the first quarter of 2023. Energy security concerns are drawing attention to the need to increase investment in oil and gas development. Oil prices have rebounded to the $80s, partly the result of the Saudi's surprise reduction of oil output to rebalance supply and demand. There continues to be a deep queue of near-term floating production projects. Thirty-seven floater projects are lined up for an investment decision within the next 18 months, though supply chain tightness will limit the pace of awards. Meanwhile, ENI has acquired a second FPSO for its field offshore Ivory Coast, Petrobras issued tenders for two FPSOs to use in the Sergipe-Alagoas Basin and SBM arranged a 14-year $1.63 billion financing carrying a 6.3% weighted average cost of debt for its FPSO heading to Brazil for startup next year. All is described in WER's April floater report. Also in the data section of the report are details for 205 floater projects in the planning stage, 71 production or storage floaters now on order, 315 floating production units currently in service and 20 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 April.
March 2023 Monthly Floating Production Systems Report
March 30, 2023 - Update
Oil prices have fallen into the upper $70s as traders take account of the risks to oil demand should recent banking turmoil become a wider financial contagion, slowing global economic growth. Meanwhile, several large oil companies have been rethinking their announced plans to reduce presence in fossil fuel production over the coming decades. Energy security needs, profit potential and pressure from major investors to maximize financial results are refocusing management strategy on development of new oil and gas resources. The queue of near-term floating production projects continues to be very strong. Around 40 floater projects are lined up for an investment decision within the next 18 months. But order backlog has been growing and ability of the supply chain to absorb future orders will continue to meter the pace of production floater awards. All is described in WER's March floater report. Also in the data section of the report are details for 205 floater projects in the planning stage, 74 production or storage floaters now on order, 310 floating production units currently in service and 21 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 30 March.
February 2023 Monthly Floating Production Systems Report
February 22, 2023 - Update
Oil prices have continued to hover in the low to mid-$80s and the futures market sees Brent prices gradually declining to the mid-$60s over the next 5+ years. Meanwhile the recent pace of production floater contracts is in line with our market forecast for the next five years. Three FPSO contracts were awarded since the year began – Rosebank, PY-3 and Agogo --and the backlog of near- term contracts remains in the mid-30s. But ability of the supply chain to absorb new orders continues to limit the pace of awards. All is described in WER's February floater report. Also in the data section of the report are details for 200 floater projects in the planning stage, 74 production or storage floaters now on order, 310 floating production units currently in service and 22 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 February.
2023 Annual Review and Forecast Report
January 15, 2023 - Annual
There has been a strong recovery in the deepwater sector and the business environment is much different now than two years ago. Crude oil prices have rebounded to the $80s+ and upstream operators are reporting record profits. They are still holding back on major increases in capital spending. But this is changing. Oil prices have risen to levels that support investment in new facilities and capex budgets are slowly expanding. The profit opportunities are too great to pass up. Meanwhile, as we describe in the report, orders for production floaters have returned to historic pace -- and a large backlog of deepwater projects in the near term planning queue has developed. Overall, we see the deepwater sector in 2023/27 entering a period of sustained strength and expansion. This despite the attention now being paid to transition away from fossil fuel. As we discuss in our annual review, the alternatives to fossil fuel are costly and less reliable. Fossil fuel will be required for the foreseeable future – and deepwater resources will remain a key source of future oil and gas supply. All is described in our 2023 Annual Review and Five Year Forecast Report.
November/December 2022 Floating Production Systems Report
December 8, 2022 - Update
Oil prices dropped around 20% over the past month, driven down by concerns about oil demand falling due to Chinese government efforts to contain a new Covid eruption and uncertainty created by the EU/US implementation of oil price caps and restrictions on Russian oil exports. Meanwhile two major near-term FPSO projects have been shelved, partially the result of cost growth eroding project economics. While the queue of near term deepwater projects remains very strong, these deferrals are indication that supply base constraints will meter the pace of new orders. The FLNG and FSRU sectors have continued to strengthen as the Russian gas cutoff in Europe disrupts traditional supply patterns and threatens to cause a major gas shortage in 2023/24. Several new FLNG projects have emerged and a floating LNG solution appears to have replaced a planned land LNG plant in Africa. Demand for regas terminals in Europe has vacuumed up all of the available FSRU units and there’s now a lead time of 4 to 5 years to take delivery of a newly-ordered FSRU. All is discussed in WER's November-December floater report. Also in the data section of the report are details for 203 floater projects in the planning stage, 73 production or storage floaters now on order, 311 floating production units currently in service and 22 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 8 December.
October 2022 Monthly Floating Production Systems Report
October 1, 2022 - Update
Oil prices regained strength over the past month as supply disruption pressures trumped global economic demand concerns. Brent spot crude returned to the low-$90s and crude five years out in the futures market increased to the lower $70s. Third quarter earnings reports of upstream operators were very positive – almost embarrassingly high. ExxonMobil, for example, set a new quarterly earnings record. While major upstream operators continue to talk about capital discipline, the huge inflow of cash is slowly forcing capital spending to grow. The queue of near-term production floater contracts has remained close to 40 units. Meanwhile, in October ExxonMobil selected Modec for the next Stabroek block FPSO contract, Petrobras started the tender process for two FPSOs and NFE contracted with Sembcorp to convert two cylindrical drill rig hulls into FLNGs. And separately, NFE firmed a deal with Comisión Federal de Electricidad to jointly develop a new LNG export hub in shallow water off the coast of Altamira, Mexico. All is discussed in WER's October floater report. Also in the data section of the report are details for 200 floater projects in the planning stage, 75 production or storage floaters now on order, 309 floating production units currently in service and 22 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 31 October.
September 2022 Monthly Floating Production Systems Report
September 30, 2022 - Update
Oil spot prices dropped into the upper $80s over the past month and Brent crude five years out dropped to the upper $60s in the futures market. But major upstream operators continue to rake in record cash and spending on new upstream projects continues to slowly ramp upwards. The queue of near-term production floater contracts has remained close to 40 units. Meanwhile, in September Petrobras awarded a $2.8 billion EPC contract to Keppel for the P-83 FPSO, ENI awarded an FPSO lease to Saipem and the UK Government decided to encourage further oil/gas development in the North Sea. All is discussed in WER's September floater report. Also in the data section of the report are details for 200 floater projects in the planning stage, 75 production or storage floaters now on order, 307 floating production units currently in service and 22 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 30 September.
August 2022 Monthly Floating Production Systems Report
August 29, 2022 - Update
Concerns about a downturn in the global economy and oil/gas supply uncertainty caused by the Russian/Ukraine conflict have been weighing on crude prices. Brent in the spot market is currently trading 15% below the average price in the second quarter and the futures price of Brent five years out has dropped 5% over the past three months. But the production floater market remains very solid. Major upstream operators continue to rake in record cash and spending on new upstream projects has been slowly ramping up. More near-term production floater contracts have come into view, especially projects involving floating LNG plants and LNG import terminals. Meanwhile, several orders for new floating production units were placed in August, including the P-80 FPSO for use in Brazil (a $2.9 billion unit), a Fast4Ward hull for the next FPSO order in Guyana, an FSRU ordered on speculation of landing a future terminal contract and sale of an existing FLNG barge for use on an LNG project in the Congo-Brazzaville. All is discussed in WER's August floater report. Also in the data section of the report are details for 198 floater projects in the planning stage, 75 production or storage floaters now on order, 305 floating production units currently in service and 23 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 29 August.
July 2022 Monthly Floating Production Systems Report
July 29, 2022 - Update
Brent spot crude this month briefly dipped below $100 intraday as fear of an economic downturn pressures near-term oil prices. But Brent rebounded to $106 at end-month and the futures price of crude for delivery five years out has remained stable on positive oil demand outlook. Meanwhile major upstream operators have been raking in record cash and the offshore industry supply chain is operating at high pace. Backlog of near-term production floater contracts continues to strengthen – though ability to take on more contracts is getting increasingly tight. The brightest light is the floating LNG regasification sector where all regas-fitted LNG carriers available three months ago have been vacuumed up for terminal use in Europe. The strong LNG market has also sparked interest in building more FLNGs and a speculative contract for a quick delivery jack-up mounted LNG plant was placed in July. All is discussed in WER's July floater report. Also in the data section of the report are details for 196 floater projects in the planning stage, 71 production or storage floaters now on order, 305 floating production units currently in service and 23 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 29 July.
June 2022 Monthly Floating Production Systems Report
June 30, 2022 - Update
Global oil demand continues to rebound from the pandemic low. At the current growth trajectory, by end-2023 global oil consumption is expected to surpass pre-pandemic level. Meanwhile, global oil supply has had difficulty keeping up with growing demand and the market remains tight. As a result, crude has been trading above $100, generating record profits for E&P operators – and slowly coaxing more operators to increase capital spending on new projects. We expect this to continue. As detailed in the report, deepwater development remains very strong, with more than 30 production floater contracts queued for the award over the next 18 months. The limiting constraint will be the ability of the supply chain to keep up with the pace of demand for new production facilities. All is discussed in WER's June floater report. Also in the data section of the report are details for 194 floater projects in the planning stage, 68 production or storage floaters now on order, 304 floating production units currently in service, and 22 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 30 June.
May 2022 Monthly Floating Production Systems Report
May 30, 2022 - Update
Crude oil is trading in the low $100s, despite coordinated efforts by major countries to lower prices by releasing crude from strategic reserves. Natural gas prices also remain at high level, driven by need in Europe to build gas inventories in expectation of the looming cutback in Russian gas deliveries. The good news is elevated oil and gas prices have been generating record profits for E&P operators, providing incentive to increase capital expenditures on new development projects. Several more FPSO projects recently moved into the near-term contract queue, raising to 31 the number of oil/gas production floater contracts lined for award over the next 18 months -- provided enough building capacity is available. Two oil/gas production floater projects moved forward over the past month – a redeploy contract for a production semi in the GOM and an engineering contract designed to morph into a lease and operate contract for an FPSO in Brazil. Perhaps most impressive has been the large number of FSRUs leased on a long-term basis over the past few weeks. Seven FSRU leases were signed in May by European utilities scrambling to replace Russian gas pipeline deliveries. These leases pretty much absorbed a large portion of the available FSRUs that had been looking for terminal contracts. All is discussed in WER's May floater report. Also in the data section of the report are details for 190 floater projects in the planning stage, 67 production or storage floaters now on order, 304 floating production units currently in service and 22 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 29 May.
April 2022 Monthly Floating Production Systems Report
May 2, 2022 - Update
Tensions in East Europe and Covid outbreak in China continue to rattle the energy sector. Oil prices remain above $100, despite efforts to lower prices by releasing crude from strategic reserves. Natural gas prices also remain at elevated level, driven by fears of interrupted gas supply in Europe due to Russian gas export constraints. High oil and gas prices have been generating record profits for E&P operators, bolstering appetite for investment in new offshore projects. The floating LNG sector has been especially strong over the past two months. Anticipated sanctions and other constraints on Russian pipeline gas supply to Europe has surged interest in floating LNG regasification terminals. As described in our April report, 13 FSRU terminals are now in the advanced planning stage in Europe. Meanwhile, contracting activity for oil/gas production floaters has been quite active. Three FPSO projects moved to contract stage over the past month – construction of a huge FPSO for use offshore Guyana, an FPSO for use in Indonesia and conversion of an FPSO to redeploy off Brazil. Conversion of two FSUs for an LNG export project in BC Canada also got final notice to proceed. All is discussed in WER's April floater report. Also in the data section of the report are details for 195 floater projects in the planning stage, 61 production or storage floaters now on order, 306 floating production units currently in service and 27 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 April.
March 2022 Monthly Floating Production Systems Report
March 24, 2022 - Update
Oil prices have soared into the $100s as the Russian invasion of Ukraine drives fear of major disruption in global oil supply. Natural gas prices have also risen as fears of interrupted gas supply in Europe grow. The situation is very fluid. But it’s clear that all oil and gas supply/demand outlook projections are out of date. It’s also clear that efforts to find new sources of oil and gas will accelerate and upstream operators will be pressed to increase capital spending on E&P. Deepwater activity has continued to rebound and contracts for at least 30 production floaters are in the near-term investment queue. This queue will likely grow as global reaction to the Russian invasion adds pressure to accelerate oil and gas project starts. Meanwhile, SBM looks ready to order a new Fast4Ward FPSO hull, the German government has decided an FSRU LNG terminal is needed as a gas supply option, two FLNG projects have moved into the near-term queue in West Africa and BP/ENI have combined forces in Angola offshore E&P. All is discussed in WER's March floater report. Also in the data section of the report are details for 200 floater projects in the planning stage, 59 production or storage floaters now on order, 305 floating production units currently in service and 28 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 March.
February 2022 Monthly Floating Production Systems Report
February 26, 2022 - Update
The oil and gas sector has been suddenly impacted by military action that will likely create a supply disruption. Crude prices spiked to $105 on 24 February as Russian forces attacked Ukraine. While crude prices fell back to under $100 later in the day, crude will likely go much higher if tensions in Europe continue to grow. Gas supply in Europe will also be impacted. This comes at a time when the pace of production floater contract awards has quickened to around 12 orders per year and a record backlog of 30 production floater contracts are lined up for award over the next 18 months. This award backlog is likely to grow further as supply disruption adds pressure to accelerate oil and gas project starts. But ability of the deepwater supply chain to take on a substantial growth in production floater projects presents a major barrier limiting production floater awards. Cost escalation is bound to follow. All is discussed in WER's February floater report. Also in the data section of the report are details for 195 floater projects in the planning stage, 58 production or storage floaters now on order, 305 floating production units currently in service and 29 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 February.
2022 Floating Production Forecast Report
February 14, 2022 - Annual
The past six years have been difficult for companies in the deepwater supply chain. Business conditions had just about recovered from the 2016 collapse in oil prices when the Covid virus sent the global energy market into a tailspin. Oil and gas prices collapsed again in 2020 as global economic activity came to a stall. Field operators cut E&P budgets to conserve cash. New projects were deferred. Orders for floating production systems dried up. Cost overruns and delays popped up along the entire supply chain. Many companies in the deepwater sector were forced to cut personnel -- some were forced out of business. But as we describe in our 2022 Annual Review and Forecast, the business environment in the deepwater sector is much different now than 12 months ago. There has been a strong recovery over the past year. Orders for production floaters have returned to a historic pace, and a large backlog of deepwater projects in the near-term planning queue has developed. In our annual report, we detail why we see the deepwater sector in 2022 entering a period of sustained strength.
November 2021 Monthly Floating Production Systems Report
November 25, 2021 - Update
The top oil importing countries have launched a coordinated effort to release crude oil reserves to force prices down. But this is likely far too small to counter the strong market fundamentals driving high oil prices. Growing global oil demand and successful metering of oil supply have created a tight market. Crude spot prices remain in the low $80s and futures prices for crude delivery in the second half of the decade have strengthened. Upstream investment is getting more attractive, as indicated by the growing number of production floater contracts in our near-term queue. More than 30 production floater contracts are now lined up for award over the next 18 months – including several small opportunistic projects looking to take advantage of rising prices. Ability of the supply chain to take on all these contracts within 18 months is the major barrier potentially limiting awards. Meanwhile, three production floaters were ordered over the past month – bringing the total number of orders to 12 units so far in 2021. This is the fastest ordering pace in many years. All is discussed in WER's November floater report. Also in the data section of the report are details for 193 floater projects in the planning stage, 51 production or storage floaters now on order, 309 floating production units currently in service and 46 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 24 November.
October 2021 Monthly Floating Production Systems Report
October 28, 2021 - Update
Crude prices have climbed to the mid-$80s on rebounding oil demand growth and the OPEC+ production curtailment agreement. But many of the larger upstream producers are still holding back on upstream investment, setting the scene for an oil supply shortfall and higher crude prices over the near future. Meanwhile, 30 production floater contracts are now queued up for award over the next 18 months, assuming no major market disruption occurs and the supply chain can absorb the orders within this time frame. It’s increasingly obvious that the principal constraint on near term production floater orders is not market demand – it’s the ability of the supply chain to take on the work without costs and delays exploding. All is discussed in the October WER report. Also in the data section of the report are details for 208 floater projects in the planning stage, 49 production or storage floaters now on order, 308 floating production units currently in service and 45 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 27 October.
September 2021 Monthly Floating Production Systems Report
September 27, 2021 - Update
Crude prices have climbed to the upper-$70s, sustained by continued demand growth and the OPEC+ production curtailment agreement. Excess oil inventory has largely been eliminated, natural gas supply shortages have appeared in Europe and LNG prices have soared. Despite this, many upstream producers are in no rush to increase spending on capital projects, setting the scene for an energy shortage over the next few years. But activity in the deepwater sector keeps improving and the number of production floater contracts in the near-term queue remains at record high. Close to 30 floater contracts are lined up for award over the next 18 months. The principal constraint is the ability of the supply chain to absorb more orders, a problem that motivated Petrobras in mid-month to delay a major FPSO bid. Meanwhile, BOEM has raised its estimate of remaining US GOM oil and gas reserves, hurricane Ida caused substantial damage to deepwater assets in the GOM and Wison received a contract to build two nuclear power barges. All is discussed in the September WER report. Also in the data section of the report are details for 211 floater projects in the planning stage, 48 production or storage floaters now on order, 308 floating production units currently in service and 45 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 September.
August 2021 Monthly Floating Production Systems Report
August 26, 2021 - Update
The Covid Delta variant and spiking infections have been generating concern about the future pace of economic recovery. As a result, in mid-month crude dropped to $65 before quickly rebounding to the low-$70s. Despite Covid concerns the near-term prospects for the deepwater sector look excellent. The major industry analysts expect oil demand growth to continue at a strong pace, OPEC+ appears to be able to successfully keep oil supply under control and crude inventory has been falling. Most important, deepwater contracting activity is very strong and the number of production floater contracts in the near-term queue remains at record high. In our report we summarize the status of 25 floater contracts that are lined up for award over the next 18 months. Meanwhile, two production floaters were ordered over the past month – a production semi for the GOM and an FPSO for use offshore Brazil -- the 8th and 9th production floater ordered thus far this year. All is discussed in the August WER report. Also in the data section of the report are details for 207 floater projects in the planning stage, 49 production or storage floaters now on order, 306 floating production units currently in service and 45 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 August.
July 2021 Monthly Floating Production Systems Report
July 27, 2021 - Update
The oil and gas sector continues to rebound from the great downturn, though regional surges of Covid have been spooking the market, causing crude prices to be a bit volatile over the past two weeks. But the near-term outlook remains very positive. Crude inventory has continued to fall as oil demand rebounds and OPEC+ oil producers restrain supply. Deepwater drilling has continued to strengthen. Major industry suppliers are reporting improved results and providing bullish guidance for projected financial results. The number of near-term production floater contracts likely in 2021/22 has grown as improving conditions motivate field operators to accelerate timing of planned project FIDs. Meanwhile, Petrobras has tendered for an FPSO to use in Sergipe-Alagoas Basin, Chevron made the final investment decision on its Jansz-Lo compression project and Golar’s FLNG operating off Cameroon received production expansion approval. All is discussed in the July WER report. Also in the data section of the report are details for 207 floater projects in the planning stage, 48 production or storage floaters now on order, 307 floating production units currently in service and 44 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 July.
June 2021 Monthly Floating Production Systems Report
June 28, 2021 - Update
The deepwater market continues to climb out of the big downturn. Oil inventory has fallen further, crude is now trading in the mid-$70 and the number of deepwater projects lined up for investment commitment in 2021/22 keeps growing. Around two dozen floating production projects with an aggregate EPC contract value of $40 billion are lined up to proceed to development by end next year -- assuming capacity is available to take on all these contracts within the short time frame. While rising activity is good news, the industry supply chain is getting clogged -- and cost pressures and delivery delays are bound to grow. In industry news, Petrobras in June awarded Saipem/DSME a $2.3 billion contract to build the 8th FPSO for its Buzios complex -- and EPC contractors are now preparing offers for FPSOs #9 and #10 for the same complex. Elsewhere, CNOOC EnerTech signed an LOI with SK Innovation for a new FPSO to use offshore China and SBM finalized financing for its Guyana-bound Prosperity FPSO. All is discussed in the June WER report. Also in the data section of the report are details for 204 floater projects in the planning stage, 47 production or storage floaters now on order, 307 floating production units currently in service and 44 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 June.
May 2021 Monthly Floating Production Systems Report
May 26, 2021 - Update
Emergence of the deepwater market from the downturn is accelerating. Oil inventory has been brought to below seasonal average, crude is trading in the high $60s, deepwater E&D has been rebounding and the number of deepwater projects lined up for investment commitment in 2021/22 is growing. As detailed in our May report, 23 deepwater projects with an aggregate EPC contract value of $35 to $40 billion look likely proceed to development by end next year. This is a much higher near-term ordering pace than anticipated in our five-year forecast made six months ago. In industry news, Petrobras in May contracted for a $2.3 billion FPSO to use in the Santos Basin, with a second similar order soon to follow. All is discussed in the May WER report. Also in the data section of the report are details for 203 floater projects in the planning stage, 45 production or storage floaters now on order, 307 floating production units currently in service and 44 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 May.
April 2021 Monthly Floating Production Systems Report
April 26, 2021 - Update
The deepwater market is clearly emerging from the downturn. Lots of green shoots have appeared. Oil inventory has been brought down to seasonal average, crude remains in the mid-$60s, bullish forecasts are being heard from key industry players and an upward trend in issuance of equity and debt by major E&P companies suggests E&P spending is returning. Driving momentum are production curtailments by OPEC+ and rising oil consumption as the global economy slowly but unevenly emerges from the Covid crisis. The result is a rebound in the production floater market. Four production floater contracts have been placed since beginning of the year and contracts for ~20 more units are poised to more forward over the next 18 months. In industry news, Petrobras restricted Modec from bidding on FPSO tenders for 13 months, Foinaven FPSO becomes the latest aging FPSO to reach field life end, Berge Helene FPSO was sold for scrap and the FSRU terminal planned in Wilhelmshaven has been switched to a hydrogen terminal. All is discussed in the April WER report. Also in the data section of the report are details for 203 floater projects in the planning stage, 44 production or storage floaters now on order, 308 floating production units currently in service and 43 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 April.
March 2021 Monthly Floating Production Systems Report
March 27, 2021 - Update
Crude is trading in the $60s, reflecting the gradual recovery of global oil demand and OPEC+ curtailment of oil supply. But crude prices are now a bit lower than last month and crude inventory has been creeping higher. Brent is trading around $64 – down from almost $70 in early March -- and US crude inventory is now 6% above seasonal level. Despite a few negatives, 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. Meanwhile, orders for production floaters have bounced back over the past month. Three production floaters have been ordered since late February. BW Offshore received a contract to supply the Barossa FPSO, SBM 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. In other news, Petrobras has been rattled by board resignations as a fallout of a continuing concern over government interference. All is discussed in the March WER report. Also in the data section of the report are 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. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 March.
February 2021 Monthly Floating Production Systems Report
February 27, 2021 - Update
The oil sector continues to rebound from the Covid crash. Crude inventory is now at seasonal level as a result of supply cuts. Brent is trading around $66, up 30% from beginning of the year. The futures market sees crude trading in the low to mid-$60s through the first half of this year – then slowly declining into the mid-$50s from 2022 forward. Generally positive news has sent market values of major offshore oil companies up an average of 30% since beginning January. But Petrobras has again fallen out of investor favor as a result of government interference in management decisions. Meanwhile, SBM speculatively ordered a sixth hull for use on a future FPSO project, BWO wrote down the book value of six off-field FPSOs, several FPSO contractors are now eyeing the floating offshore wind space and SBM’s $850 million over subscribed debt offering confirms investor interest in FPSO financings. All is discussed in the February WER report. Also in the data section of the report are details for 207 floater projects in the planning stage, 42 production or storage floaters now on order, 306 floating production units currently in service and 44 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 February.
January 2021 Monthly Floating Production Systems Report
January 25, 2021 - Update
Production curtailment by OPEC+ along with slowly rising oil consumption have brought oil prices back to the mid-$50s. But deepwater investment remains soft as field operators continue to hold onto cash, defer investment decisions. The past year has clearly been a major challenge to the deepwater supply chain. Only four FPSOs were ordered in 2020, far below the average ordering pace. The first half of this year will continue to present a business challenge. But more than a dozen production floater orders are queued up for award in 2021/22. The top FPSO/FPU contract candidates over the next 24 months are identified in the report. In industry news, to conserve cash ExxonMobil is negotiating to delay the scheduled ownership and operation transfer of the FPSOs leased in Guyana and Golar LNG reached a deal to sell a large portion of its interest in the FLNG and FSRU business to New Fortress Energy. All is discussed in the January WER report. Also in the data section of the report are details for 207 floater projects in the planning stage, 40 production or storage floaters now on order, 308 floating production units currently in service and 42 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 January.
2021 Floating Production Forecast
December 14, 2020 - Annual
More than 200 known projects in the planning stage are likely to require a floating production system for field development. All have reached a level of planning where the production solution has been narrowed to a few options -- including use of a floating production facility. But an investment decision is needed to transform these planned projects into contracts for production facilities -- a decision that will be influenced by underlying market conditions. In our 2021 forecast report we examine a dozen business drivers that will shape market conditions in the deepwater sector and drive the pace of production floater orders over the next five years. Some drivers are positive, some negative. Our forecast of production floater orders through 2025 is based on a detailed assessment of the probability of each project in the planning queue reaching the investment decision under three specified market scenarios. We include details for contract timing, buying power location, estimated capex, etc. This year’s forecast of orders and capex is significantly lower than last year. The number of FPSO and FPU orders between 2021/25 in our most likely scenario is 31% lower than forecast for 2020/24. FLNG orders are down 17%, FSRU orders are down 40%. Capex associated with building and conversion contracts is 15% lower than last year’s forecast. The lower numbers are primarily the result of the economic shock caused by Covid 19 -- a black swan that wreaked temporary havoc in the deepwater business sector. All is detailed in our new 2021 forecast report
October 2020 Monthly Floating Production Systems Report
October 23, 2020 - Update
The oil market and upstream investment remains soft as a new wave of virus infections jolt the world economy. Oil inventory has been declining slowly, but still remains stubbornly high. Crude prices can’t break out of the low $40s range and most field operators continue to hold onto cash, defer investment decisions. OPEC+ seems ready to react to the softness by delaying its planned easing of production constraints this year. But supply constraints are a stopgap measure. Demand needs to increase to get back on track. Meanwhile ExxonMobil firmed a contract with SBM for its third FPSO offshore Guyana, Petrobras decided to rebid the FPSO contract for the Parque das Baleias project in Brazil and Exmar’s charter of the Tango FLNG barge in Argentina was prematurely terminated. All is discussed in the October WER report. Also in the data section of the report are details for 200 floater projects in the planning stage, 44 production or storage floaters now on order, 304 floating production units currently in service and 41 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 October.
September 2020 Monthly Floating Production Systems Report
September 24, 2020 - Update
Rebalancing the oil market and reinvigorating upstream investment is proving difficult. A new wave of virus infections over the past month has lowered projections for near term growth in oil demand. OPEC+ easing of production constraints raised crude supply beginning August. Oil inventory remains stubbornly high and slower demand growth + increased supply will slow rebalancing. Crude prices, which had risen to the mid-$40s last month, are again back in the low $40s -- and most field operators continue to hold onto cash, defer investment decisions. But Petrobras continues to be a bright light in an otherwise subdued production floater market. In September Petrobras said it is negotiating with SBM to lease a 6th FPSO for use on the Buzios complex in Santos Basin. The contract was expected to be tendered to several contractors in usual fashion – but SBM was the only contractor capable of supplying the large FPSO in the time frame Petrobras requires. All is discussed in the September WER report. Also in the data section of the report are details for 196 floater projects in the planning stage, 43 production or storage floaters now on order, 303 floating production units currently in service and 41 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 September.
August 2020 Monthly Floating Production Systems Report
August 25, 2020 - Update
The market continues to gradually improve as global oil demand rebounds from the March/April collapse and the OPEC+ oil output agreement constrains supply. Crude prices have risen to the mid-$40s – up more than four times the low in April. However, oil market conditions are still very fragile. A second wave of infections over the next few months is anticipated and the impact of the virus on oil demand is expected to extend through at least 2021. Crude inventory also remains stubbornly high. In the US crude inventory has been falling -- but remains 15% above the average for this time of year. Many field operators continue to defer investment decisions. But green shoots have appeared. Petrobras in mid-August signed an MOU to lease an FPSO for offshore Brazil -- the first FPSO order since March – and more orders are in view. A few weeks back Petrobras’ board approved issuing a tender for three FPSOs for its Buzios complex. Resolution of the presidential election in Guyana in early August is also good news as it appears to remove a barrier to ExxonMobil’s plans to acquire additional FPSOs for the Stabroek block. All is discussed in the August WER report. Also in the data section of the report are details for 216 floater projects in the planning stage, 45 production or storage floaters now on order, 303 floating production units currently in service and 41 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 24 August.
July 2020 Monthly Floating Production Systems Report
July 27, 2020 - Update
Impact of the Covid 19 virus on the oil sector has been devastating. Global oil demand declined more than 16 md/d during the second quarter – an historical record drop. While still way below pre-Covid 19 levels, oil prices have recovered somewhat from the demand shock/supply glut. After hitting single digits in April, Brent crude has gradually rebounded and is now trading around $43. But appetite for new upstream investment remains dampened and new deepwater project starts continue to be on hold. An exception has been Petrobras, which in July received board approval to begin the tender process to acquire three large FPSOs for use on the Buzios complex. Meanwhile, industry consolidation has kicked off with Chevron agreeing this week to absorb Noble Energy, the major deepwater gas player offshore Israel. More consolidation in the deepwater sector is likely to occur. All is discussed in the July WER report. Also in the data section of the report are details for 216 floater projects in the planning stage, 44 production or storage floaters now on order, 304 floating production units currently in service and 41 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 24 July.
June 2020 Monthly Floating Production Systems Report
June 25, 2020 - Update
The global oil market is gradually recovering. Oil prices have rebounded to the low $40s as supply cuts of OPEC+ and gradual return of economic activity rebalance oil supply and demand. But the effects of the Covid-19 crisis and oil supply glut continue to seriously dampen investment appetite in the oil and gas sector. New deepwater project starts have been on hold and we expect this situation to continue into the third quarter of this year. Looking further out, we expect oil prices to continue to increase over the next six months and see a gradual pickup in deepwater activity beginning late 2020/early 2021. Deepwater project starts in Brazil, Guyana, Australia and (maybe) Nigeria will be in the vanguard of production floater orders as the rebound begins. All is discussed in the June WER report. Also in the data section of the report are details for 214 floater projects in the planning stage, 44 production or storage floaters now on order, 306 floating production units currently in service and 40 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 24 June.
May 2020 Monthly Floating Production Systems Report
May 23, 2020 - Update
The Covid-19 crisis and oil price rout continue to seriously impact sentiment and planning in the offshore oil and gas sector. But recent developments indicate the market likely bottomed over the past month and the offshore sector is now in the early stage of recovery. Projected decline in oil demand during 2020 is now expected to be less than earlier thought, the oil glut is falling as producers aggressively cut oil supply and oil prices have recovered some of the huge losses in March/April. While oil prices still remain well below the pre-crisis level, the spot price of Brent has risen more than 70% over the past month --and the market value of key offshore oil/gas operators has recovered some of the losses incurred in March. Not that the industry is out of the woods – but at least some green shoots have appeared. Meanwhile investment in deepwater projects remains on hold. All is discussed in the May WER report. Also in the data section of the report are details for 212 floater projects in the planning stage, 44 production or storage floaters now on order, 305 floating production units currently in service and 40 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 May.
April 2020 Monthly Floating Production Systems Report
April 27, 2020 - Update
The coronavirus crisis and oil glut continue to upend the offshore oil and gas sector. Global lockdowns have caused unprecedented declines in economic activity over the past month. In parallel, Saudi Arabia’s decision to flood the oil market to force a collective supply cut agreement has created a huge oil glut. The combination has been devastating to the oil and gas sector. Oil prices have collapsed, investment in major upstream projects has largely come to a standstill and many companies in the oil and gas sector are looking at the financial abyss. We expect this combination of events to significantly slow the start of new floater projects through 2020 and into 2021. All is discussed in the April WER report. Also in the data section of the report are details for 212 floater projects in the planning stage, 45 production or storage floaters now on order, 304 floating production units currently in service and 40 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 April.
March 2020 Monthly Floating Production Systems Report
March 26, 2020 - Update
The coronavirus crisis and oil price war has upended the offshore oil and gas sector. Oil demand has sharply fallen as the virus spread shuts down global economic activity. In parallel, Saudi Arabia and Russia kicked off a full-fledged price war by flooding the market with oil to see who blinks first. The combination is forcing field operators to defer investment plans – and the impact on the floating production sector is a repeat of the 2006/07 financial meltdown. We expect the combination of events will shut down planned floater project starts through the remainder of the year -- and likely into 2021. All is discussed in the March WER report. Also in the data section of the report are details for 213 floater projects in the planning stage, 49 production or storage floaters now on order, 305 floating production units currently in service and 35 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 24 March.
February 2020 Monthly Floating Production Systems Report
February 23, 2020 - Update
The coronavirus crisis has sharply cut oil demand in China, sending oil prices down more than 15% from the beginning of the year, threatening offshore capex plans. Meanwhile new production floater orders keep flowing. Modec booked a major FPSO contract at end-January, increasing its order backlog to a record eight FPSO contracts being simultaneously executed. The latest FPSO, destined for Equinor’s Bacalhau (formerly Carcará) field in Brazil, is the largest – and probably most complex -- FPSO project Modec has booked to date. In other orders, Aker Energy signed a letter of intent with Yinson to lease an FPSO for use offshore Ghana and a regas terminal in India requiring an LNG FSU for storage has moved to the development stage. But the strong pace of recent orders has a downside. Capacity of major FPSO contractors is filling up and ability to take on new FPSO contracts looks increasingly likely to constrain the pace of FPSO EPC awards over the next year or two -- and drive FPSO contract prices higher. Petrobras FPSO contracting plans are particularly likely to be impacted. All is discussed in the February WER report. Also in the data section of the report are details for 216 floater projects in the planning stage, 50 production or storage floaters now on order, 305 floating production units currently in service and 35 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 February.
January 2020 Monthly Floating Production Systems Report
January 23, 2020 - Update
The production floater market has continued to rebound from the depths of the 2014/16 business collapse. Fourteen production floaters were ordered in 2019 – an ordering pace that exceeded the average number of contracts placed annually over the past decade. And 2020 got off to a good start with an FPSO order on 10 January – the first of around a dozen FPSO orders expected this year. In the January report we recap the production floater orders in 2019, describe the new FPSO order in January, profile the ups and downs in production floater orders over the past decade and summarize the current FPSO/FPU order backlog. In the data section of the report are details for 219 floater projects in the planning stage, 49 production or storage floaters now on order, 304 floating production units currently in service and 35 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 January.
December 2019 Monthly Floating Production Systems Report
December 28, 2019 - Update
Over the past month SBM ordered two more Fast4Ward FPSO hulls in anticipation of future FPSO contracts. Petrobras announced a plan for 13 new FPSOs to enter service over the next five years – and said 13 aging floating production units will be retired over the same period. Two FSRU terminals have moved to the development stage. Financing of the Acajutla power plant/FSRU import terminal in El Salvador closed in December and a Chinese group was selected to build an FSRU terminal in Cyprus. Meanwhile oil prices have benefited from the OPEC+ cutback agreement, Saudi efforts to bolster Aramco post-IPO shares performance and improved sentiment about the global economic outlook. The price of Brent crude is up 9% since the beginning of this month. In the data section of the report are details for 218 floater projects in the planning stage, 49 production or storage floaters now on order, 302 floating production units currently in service and 35 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 27 December.
Annual 2020 Floating Production Systems Report
November 25, 2019 - Annual
WER's 2020/24 forecast of floating production system orders is now available. The 95 page report provides our assessment of ten underlying market drivers that will determine the pace of orders for production floaters over the next five years. We examine future oil/gas demand growth, deepwater's role in the future energy supply mix, risk of future oil/gas supply disruption, future oil and gas prices, capex budgets of deepwater field operators, competitiveness of deepwater with shale/tight rock development for upstream capex resources, access to capital for deepwater projects, impact of EPC/leasing contractors' capacity constraints on pace of future FPSO orders and impact of opening Brazilian deepwater resources to foreign investment and possible Petrobras privatization. This is followed by our forecast of orders-- segmented into five major types of production systems. Reflecting our assessment that the underlying market drivers support growing investment activity in the floating production sector over the next five years, our production floater order forecast for 2020/24 is higher than last year.
November 2019 Monthly Floating Production Systems Report
November 24, 2019 - Update
There has been a flurry of production floater contracts over the past two months. Five production floaters and a storage unit were ordered in October/November – representing a combined capital expenditure of around $8 billion. Details for the recent contracts are provided in our November report. We also provide an update on deepwater production offshore Brazil. Output on Brazilian floating production systems has now reached almost 3 mb/d – representing 3% of global oil output. In the report we profile the daily oil, gas and water production on each of the 53 FPSOs and production semis now operating in the Campos and Santos Basins. In the data section of the report are details for 216 floater projects in the planning stage, 47 production or storage floaters now on order, 302 floating production units currently in service and 35 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 November.
September 2019 Monthly Floating Production Systems Report
September 20, 2019 - Update
In the September WER report we profile 48 floating regasification terminal (FSRU) projects at various stages of planning and provide our assessment of the probability of each moving forward to development. The evaluation takes into account the strength of the project promoter, infrastructure needed to support the terminal development, strength of local gas offtaker, government support for the project, stage of permitting approvals and ease of doing business in the importing country. We also look at the deepwater implications of the mid-September attack on Saudi crude processing infrastructure – an event that demonstrated the disruption risk in Mideast oil supply and highlighted the need for alternative sources of crude. In the data section of the report are details for 215 floater projects in the planning stage, 43 production or storage floaters now on order, 301 floating production units currently in service and 34 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 September.
August 2019 Monthly Floating Production Systems Report
August 26, 2019 - Update
Our August WER floating production report highlights the known floating liquefaction (FLNG) projects in the planning stage and the development status of each. We are tracking around 20 floating liquefaction projects in various stages of planning as of mid-2019. All are possible candidates for use of an FLNG – though the investment decision is generally 3+ years out and in most projects there are major financing barriers to get past and often commercialization options other than FLNG. But a portion of these projects will likely progress to FLNG contracts over the next five years – with the number of orders dependent on future underlying dynamics in the global LNG market. We also highlight the potential of Petrobras being privatized – a development that could free the company of intrusive government directives and boost FPSO contract opportunities in Brazil. Meanwhile, despite increased risk of oil supply disruption in the Mideast, oil prices have fallen over the past month as concerns over a future demand/supply imbalance weigh on the market. All is discussed in the August report. Also in the data section of the report are details for 219 floater projects in the planning stage, 43 production or storage floaters now on order, 301 floating production units currently in service and 32 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 August.
July 2019 Monthly Floating Production Systems Report
July 22, 2019 - Update
Our July WER floating production report highlights the large number of FPSO projects that are approaching final investment decision. Assuming no major shock in the underlying market, around two dozen FPSO contracts are in line for award over the next 18 to 24 months. Whether the supplier base is capable of taking on all of these projects within this time frame is an issue. Growing backlog is already forcing major FPSO contractors to be increasingly selective in bidding on new contracts. Meanwhile oil prices have trended in the mid $60s over the past month -- as excess crude inventory and concern over future demand/supply growth has (so far) offset risk escalation in the Mideast that in the past would have sent crude prices soaring. All is discussed in the July report. Also in the data section of the report are details for 222 floater projects in the planning stage, 48 production or storage floaters now on order, 300 floating production units currently in service and 32 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 July.
June 2019 Monthly Floating Production Systems Report
June 24, 2019 - Update
Oil prices have been volatile over the past month. Brent dropped 17% between mid-May and mid-June due to demand growth fears and growing crude inventory. But several tanker attacks and a drone downing near the Strait of Hormuz caused a rebound and Brent was back to the mid $60s as of 21 June. Meanwhile, the production floater market has been active. Petrobras issued letters of intent to lease two FPSOs – ending an eighteen month hiatus in Petrobras FPSO orders. SBM received an LOI for the Mero #2 FPSO, Modec got an LOI for the Buzios #5 FPSO. On a smaller scale, Hindustan Oil Exploration contracted with Expro and Zentech to convert a jackup into a MOPU for use offshore India. All is discussed in our June WER floating production report. Also in the data section of the report are details for 224 floater projects in the planning stage, 50 production or storage floaters now on order, 301 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 June.
May 2019 Monthly Floating Production Systems Report
May 22, 2019 - Update
Despite rising supply risk, crude prices have shown remarkable resilience. Oil prices have trended in the low to mid $70s over the past month. Even an attack on several tankers outside the Strait of Hormuz failed to jolt the oil market. Expectation that OPEC+ will offset Iranian oil exports and continuing strong global oil demand growth has provided pricing support -- thus far. Meanwhile, two floater projects moved to the development stage. Chevron selected a yard to build the semisubmersible hull for its Anchor project in the GOM. ONGC awarded the lease for an FPSO for use offshore the east coast of India. Among other developments, Woodside selected the FEED contractor for the Scarborough semi hull and mooring system, Husky/CNOOC’s Madura MDA/MBH gas project now looks to require a MOPU, not barge and COIDIC is finalizing terms to take an equity role in the Tema FSRU terminal in Ghana. All is discussed in our May WER floating production report. Also in the data section of the report are details for 223 floater projects in the planning stage, 48 production or storage floaters now on order, 306 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 May.
April 2019 Monthly Floating Production Systems Report
April 24, 2019 - Update
Oil prices have climbed into the mid $70, reflecting the impact of voluntary supply curtailments, instability in Libya and Venezuela, tightening of sanctions on Iran and a generally more positive view of future oil demand. $80+ crude looks likely by mid-year – and crude prices could spike much higher by then. In recent contract action, Samsung received a contract to build a gas/condensate FPSO for offshore India, Modec emerged as the likely supplier of the Buzios #5 FPSO, SBM firmed its third speculative Fast4Ward FPSO hull order, Chevron selected Aker Solutions to supply an unmanned power and control semi for the Jansz-Lo project and MOL agreed to partner with Karpowership on an FSRU conversion. All is discussed in our April WER floating production report. Also in the data section of the report are details for 221 floater projects in the planning stage, 47 production or storage floaters now on order, 306 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 April.
March 2019 Monthly Floating Production Systems Report
March 22, 2019 - Update
In our March report we look at whether the production floater forecast we made last October continues to be realistic, given developments over the past six months. There has been a slight slowing of projected global economic growth, a fall in oil prices on the spot and futures market and further evidence that shale investment is crowding out deepwater project starts. Petrobras has also not been consummating FPSO contracts as expected. The impact of these developments on expected production floater orders through 2023 is discussed -- and we provide a list of 75 FPSO and FPU projects considered to be the strongest candidates to reach the contracting stage within the next five years. In the data section of the report are details for 217 floater projects in the planning stage, 46 production or storage floaters now on order, 303 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 March.
February 2019 Monthly Floating Production Systems Report
February 26, 2019 - Update
The number of FPSO projects approaching final investment decision continues to grow and at least two dozen FPSO contracts are queued up for award over the next eighteen months. Within the past month Woodside selected Modec for its FPSO project off Senegal and SBM said it plans to order a third speculative Fast4Ward FPSO hull to position for anticipated contracts. Meanwhile oil prices have climbed into the mid $60s – driven by the OPEC+ crude supply cuts, declining crude inventory and continued strong crude demand. All is discussed in our February report. Also in the data section are details for 224 floater projects in the planning stage, 45 production or storage floaters now on order, 302 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 February.
January 2019 Monthly Floating Production Systems Report
January 24, 2019 - Update
Oil prices in have rebounded to the low $60s as the OPEC+ supply curtailment deal starts to rebalance the market. But residual high crude inventory and fears of slowing oil demand growth continue to pressure oil prices and dampen upstream investment sentiment. Looking back, 2018 was a relatively good year for production floater orders. Contracts for nine FPSOs, a production semi, two production barges, two FLNGs and more than a half dozen FSRUs were placed during the year. All is discussed in our January report – along with an updated profile of construction activity in the FPSO sector. In the data section are details for 219 floater projects in the planning stage, 45 production or storage floaters now on order, 302 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 January.
December 2018 Monthly Floating Production Systems Report
December 26, 2018 - Update
Oil prices continued to descend over the past month as a result of inventory build and demand growth concerns. Brent dropped to the low $50s, WTI to the low $40s. Reversal of the price decline seems a ways off as it will take time for the OPEC+ production cut deal to impact inventory. A lot of oil is in transit. Q1 2019 will likely be a nerve racking time for the oil sector. Meanwhile BP has proceeded with a major LNG project in West Africa. The initial phase entails construction of both an FLNG and FPSO – with additional FLNG orders in subsequent phases. All is discussed in our December report – along with a summary of the FPSO projects now in the planning queue and our assessment of where each stands in the development stage. In the data section are details for 215 floater projects in the planning stage, 44 production or storage floaters now on order, 304 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 December .
November 2018 Monthly Floating Production Systems Report
November 27, 2018 - Update
Oil prices took a violent dive in November. Growing crude inventory has sparked fear of a new demand/supply imbalance developing – causing market sentiment to suddenly reverse. The potential of oil spiking to $100+ by year end has been replaced by worries of a repeat of the 2014/15 price collapse. But while recent developments have sent a chill through the oil sector, orders for new production floaters have been relatively strong. Contracts for production floaters over the past two months have included construction of a production semi, construction of a speculative FPSO hull, conversions of two FPSOs, conversion of a production barge, charter of an FLNG barge and conversion of an FSRU and FSO. All is discussed in our November report. In the data section are details for 231 floater projects in the planning stage, 43 production or storage floaters now on order, 303 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 November.
October 2018 Annual Floating Production Systems Report
November 8, 2018 - Annual
WER's 2019/23 forecast of floating production system orders is now available. The report provides our assessment of the underlying market situation likely to prevail in deepwater development over the next five years. We examine oil/gas demand growth, deepwater's role in the future energy supply mix, risk of future oil/gas supply disruption, expected oil and gas prices, competitiveness of deepwater with shale, capex budgets of field operators, access to capital for deepwater projects, deepwater supply chain constraints and the future pace of Brazilian offshore recovery. This is followed by our forecast of orders for five types of production systems under three market scenarios. Our capex forecast for 2019/23 is 9% higher than last year, the result of a larger number of FPSOs and FPUs forecast to be ordered. Driving the higher numbers is the generally better industry outlook and the expected strong revival of FPSO orders in Brazil.
September 2018 Monthly Floating Production Systems Report
September 19, 2018 - Update
Underlying market fundamentals look very good. The global economy is on steroids – growing at 3.9%. Oil prices have climbed again into the high $70 and sanctions on Iran oil shipments are likely to send prices much higher over the next few months. Bottlenecks in the major US shale oil region have raised costs and slowed growth in shale oil production, providing incentive for deepwater investment. Concerns over global excess oil inventory have been replaced by worries about a future supply shortfall. More than 20 production floater projects in the planning queue are ready to go forward to FID. But despite the strong underlying market, contracts for production floaters have been stuck in idle over the past few months – aside from a long anticipated FSRU contract in West Africa. All is discussed in our September report. In the data section are details for 232 floater projects in the planning stage, 44 production or storage floaters now on order, 304 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 September.
August 2018 Monthly Floating Production Systems Report
August 20, 2018 - Update
Thirty floating liquefaction projects and more than 40 floating regasification projects are in the planning queue. Some are imminent, some longer term, some will ultimately be shelved. An in-depth analysis by WER profiles these projects and systematically assesses the underlying strengths and weaknesses in each that determine whether the investment decision hurdle will be cleared. Some highlights are in our August WER report. Also in the report is an update of the underlying oil market fundamentals, the wind down status of Petrobras’ FPSO serial construction program and SBM’s thoughts about ordering more Fast4Ward FPSO hulls. In the data section are de tails for 228 floater projects in the planning stage, 46 production or storage floaters now on order, 300 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 August.
July 2018 Monthly Floating Production Systems Report
July 24, 2018 - Update
Oil prices continue in the $70s, excess crude inventory has been eliminated, supply constraints loom – but upstream investment remains soft. Despite the reviving crude market, many operators are not yet increasing their spending on capital projects -- though even in this soft environment several production floater contracts moved forward over the past month. SBM received a FEED contract for the Liza 2 project that will morph into an EPC contract. Mitsui OSK entered into a preliminary agreement to develop and operate an FSRU regas terminal in Hong Kong. TechnipFMC/Samsung and Modec were awarded competing FEED contracts for the Caldita/Barossa FPSO. All is discussed in WER's July report. Also in the data section of the report are details for 229 floater projects in the planning stage, 50 production or storage floaters now on order, 300 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 July.
June 2018 Monthly Floating Production Systems Report
June 22, 2018 - Update
While orders for new production floaters have slowed over the past few months, the near term outlook for the floating production sector continues to be very positive. Over 200 deepwater projects are in the planning queue – with more than 20% likely to reach the contracting stage by the end of 2019. Assuming no major change in the underlying market, these projects could produce orders for 22 FPSOs, 2 production semis, 2 FLNGs and 18 FSRUs over the next 18 months. Our June report provides a summary of these projects. Also in the data section of the report are details for 229 floater projects in the planning stage, 48 production or storage floaters now on order, 300 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 June.
May 2018 Monthly Floating Production Systems Report
May 23, 2018 - Update
Crude spot prices have moved close to $80, propelled by strong oil demand growth, curtailed production and geopolitical worries. This price level – and potentially higher -- increasingly looks sustainable over the near to mid-term. The futures market has recently become much more bullish on crude pricing. Meanwhile, CNOOC ordered an FPSO for use in the South China Sea, Exmar signed a 10 year charter with Gunvor for use of its LNG regasification barge in Bangladesh, BW Offshore looks like the winner of an FSRU contract in Brazil and Petrobras is now reviewing offers for the Buzios #5 FPSO. All this is described in the May 2018 WER report. Also in the data section of the report are details for 227 floater projects in the planning stage, 48 production or storage floaters now on order, 300 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 May.
April 2018 Monthly Floating Production Systems Report
April 28, 2018 - Update
Crude prices have moved into the mid-$70s as excess inventory disappears from the market. This price level is supported by strong demand growth and $70+ pricing looks sustainable over the near to mid-term. Meanwhile, Energean contracted to build an FPSO for use offshore Israel, CNOOC/Husky proceeded with the construction of a production barge for the Madura MDA/MBH gas complex offshore Indonesia and Statoil contracted for a major repair and upgrade of the Njord Bravo FSO for future use offshore Norway. Petrobras continues with its aggressive FPSO procurement ramp-up, but timing of proposal due dates keeps being moved forward. All this is described in the April 2018 WER report. Also in the data section of the report are details for 224 floater projects in the planning stage, 50 production or storage floaters now on order, 298 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 April.
March 2018 Monthly Floating Production Systems Report
March 20, 2018 - Update
In the March 2018 WER report we revisit the five year forecast of production floater orders made last October. As detailed in the March report, some of the assumptions underlying the forecast have been impacted – mostly positively -- by developments over the past six months. They include a strengthening global economy, oil market rebalancing, uptick in crude pricing, signs of a revival in deepwater E&P and strong reemergence of Petrobras as a buyer of production floaters. In the report we assess whether our forecast has been impacted by these changes. Also in the data section of the report are details for 226 floater projects in the planning stage, 51 production or storage floaters now on order, 300 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 March.
February 2018 Monthly Floating Production Systems Report
February 24, 2018 - Update
Petrobras has certainly aggressively re-entered the market for production floaters. The Brazilian operator has just ordered two large FPSOs for use offshore Brazil and has five more FPSOs at various stages of bidding. Managing such a portfolio of contracts could prove difficult. ExxonMobil has also accelerated procurement of production floaters for its Stabroek block off Guyana, with one FPSO being built and two nearing contract. Meanwhile, global crude inventory has continued to fall as a result of strong demand growth and supply curtailment. Oil prices have fallen off over the past month. While spot Brent remains in the mid-$60s, the futures price has fallen to the mid-$50s. All this is detailed in the February 2018 WER Floating Production Report. Also in the data section of the report are details for 227 floater projects in the planning stage, 50 production or storage floaters now on order, 298 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 February.
January 2018 Monthly Floating Production Systems Report
January 22, 2018 - Update
As detailed in the January WER report, 2018 looks to be a good year for the deepwater supply chain. The rebound begun in 2017 has continued into the New Year. Shell contracted in January for an FPSO to use in the North Sea and Golar booked a terminal contract for one of its available FSRUs. Meanwhile, Petrobras has provided details for its spending plans over the next five years, confirming it is back in the FPSO buying business. And oil prices continue to climb as a result of strong crude demand growth, curtailed crude production, declining crude inventory and heightened disruption risk. The price of Brent crude is hovering near $70 -- and $80 suddenly looks attainable. In the data section of the report are details for 223 floater projects in the planning stage, 53 production or storage floaters now on order, 297 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 January.
December 2017 Monthly Floating Production Systems Report
December 20, 2017 - Update
As detailed in the December WER report, ordering activity for production floaters ended the year on a high note. Two major floating production unit contracts were placed in December. Shell contracted with Sembcorp Marine to build a production semi for use on the Vito field in the GOM. Petrobras finalized a contract with Modec to supply a leased FPSO for the Libra complex in Santos Basin. These contracts bring the number of production floater orders to ten units in 2017 – almost back to the pace of the good old days. In addition Petrobras is understood to have contracted with a Chinese yard to build the FPSO hull for the Atapu Norte/Sururu field in Santos Basin and Yinson appears ready to take on completion of a stalled project to complete an FPSO for use offshore Malaysia. Meanwhile the price of Brent has climbed into the low 60s as crude demand/supply rebalances and excess crude inventory continues to fall. In the data section of the report are details for 218 floater projects in the planning stage, 53 production or storage floaters now on order, 297 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 December.
November 2017 Monthly Floating Production Systems Report
November 21, 2017 - Update
As detailed in the November WER report, ordering activity for production floaters continues to accelerate. In mid-November Statoil selected Sembcorp for a $490 million contract to build the FPSO hull for the Johan Castberg field in the Barents Sea. This order brings the number of FPSO contracts to nine so far in 2017 – vs. three in 2015 and none in 2016. A second FPSO contract, for the North Sea Penguins field, is widely rumored to be near contract award, with Fluor as the EPC contractor. Meanwhile global oil demand/supply continues to rebalance, Brent spot crude has climbed into the low $60s, tensions in the mid-east have escalated and the major producers look likely to extend the output agreement – but the futures market continues to see Brent crude priced in the upper $50s five to seven years out. In the data section of the report are details for 220 floater projects in the planning stage, 50 production or storage floaters now on order, 298 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 November.
2018 Floating Production Systems Forecast
October 1, 2017 - Annual
WER’s 2018 Forecast Report, the 21st in a series of forecasts dating from 1998, presents our projection of floating production system orders over the next five years. The 102 page report provides market intelligence and insights useful to business planners and others involved in deepwater development. First we present our assessment of the underlying deepwater market conditions likely to prevail over the 2018/22 time frame. Then we provide our forecast of orders for FPSOs, FPUs, FLNGs, FSRUs and FSOs under three market scenarios. The forecast for 2018/22 is much higher than last year – with the number of production floater orders and projected capex up more than 30 percent from our 2017/21 forecast. Driving the higher numbers are the improving underlying market conditions, an expected strong revival of FPSO orders (especially in Brazil), heightened interest in FLNGs to monetize stranded gas and a rapidly growing number of potential FSRU projects.
September 2017 Monthly Floating Production Systems Report
September 20, 2017 - Update
As described in the September WER report, evidence is accumulating that supply and demand in the oil market is rebalancing. Oil prices are firming as excess global crude inventory continues to be worked down by strong demand growth and curtailed supply. Brent crude is now trading in the mid-$50s and the futures market is predicting prices in the upper-$50s five years out. Also in the report are details for an FSRU terminal project in India that over the past month moved to the contracting stage and several FPSO projects in the planning stage have gotten closer to the investment commitment. In the data section of the report are details for 213 floater projects in the planning stage, 50 production or storage floaters now on order, 294 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 September.
August 2017 Monthly Floating Production Systems Report
August 23, 2017 - Update
As described in the August report, oil prices have returned to the low-$50s as global crude inventory continues to be worked down. Increasing oil demand and curtailed supply has been trimming the excess crude stock that built up in late 2016/early 2007 -- giving support to near term crude pricing. Meanwhile two major FPSO contractors have expressed their confidence in the future FPSO market – one by ordering a speculative FPSO hull, the other by assuming the role of field operator and committing an available FPSO to the field. In the report we examine these two competitive positioning strategies -- both reflecting growing confidence in the ongoing market revival and evidence of management willingness to take risk to close an FPSO contract. Also in the report is a summary of the recent BOEM lease auction, the results of which indicate a revival of interest in deepwater development in the GOM. In the data section are details for 203 floater projects in the planning stage, 49 production or storage floaters now on order, 293 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 August.
July 2017 Monthly Floating Production Systems Report
July 24, 2017 - Update
As described in the July WER report, oil prices continue to be constrained in the upper $40s, reflecting the dampening effect of the large crude inventory overhanging the market. But crude demand growth is now outpacing supply growth and there are increasingly clear signs that crude inventory is declining. Overall, it seems clear that rebalancing of the global crude market is underway – though the pace is slower than the market earlier anticipated. And as described in our July report, even in the relatively weak current pricing environment there has been a recent flurry of investments in new production floater projects. Several floater projects have moved to the development stage over the past month -- including modification and redeployment of two FPSOs, an FPSO conversion and an FSO lease for use offshore Myanmar. Also in the report are details for 200 floater projects in the planning stage, 50 production or storage floaters now on order, 293 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 July.
June 2017 Monthly Floating Production Systems Report
June 18, 2017 - Update
The June WER report reviews the negative impact of excess crude inventory on oil prices. Crude prices have been driven back into the mid-$40s. But as described in the report, despite near term pricing weakness, production floater orders have been heating up. Over the past month ENI proceeded with its floating LNG project in Mozambique and ExxonMobil made the investment decision on the Liza oil project offshore Guyana. Looking forward, Petrobras is poised to finally proceed with orders for two large FPSOs for Brazil and, looking a bit further out, more than a dozen production floater contracts are in sight by end-2018. Details for these upcoming contracts are in the report. Also in the report are details for 201 floater projects in the planning stage, 47 production or storage floaters now on order, 292 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 17 June.
May 2017 Monthly Floating Production Systems Report
May 22, 2017 - Update
The May WER report examines the rate at which oil inventory is declining, looks at the rebalancing now taking place in the oil market and comments on the narrow price range within which crude is trading. The report also profiles the latest FPSO tender issued by Petrobras, describes the lease for an FSRU for use in India and discusses the decision by Anadarko to suspend the Shenandoah project in the Gulf of Mexico. In the data section of the report are details for 202 floater projects in the planning stage, 46 production or storage floaters now on order, 295 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in a sortable format. Information is current as of 21 May.
April 2017 Monthly Floating Production Systems Report
April 21, 2017 - Update
The April WER report looks at the slow decline that has begun in global oil inventory as OPEC/Russia production cuts over the past quarter reduce crude supply. But, as discussed in the report, re-balancing of supply and demand is hitting headwinds. As OPEC/Russia output has fallen, near term oil demand growth appears to have tapered off and US shale producers have been ramping up crude output -- adding to uncertainty about future oil prices. In the report we describe the most recent FSRU order and discuss a new barrier placed in the path of Petrobras' recovery -- an injunction that ties up $1.25 billion cash from an already completed transaction. We also profile the long term growth of floating production systems and estimate the number of employed and employable production units likely to be in inventory at end 2017 and 2019. In the data section of the report are details for 202 floater projects in the planning stage, 48 production or storage floaters now on order, 292 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 April.
March 2017 Monthly Floating Production Systems Report
March 21, 2017 - Update
The March WER report revisits our October 2016 five year forecast of production floater orders. Some assumptions underlying our forecast have been impacted – positively or negatively -- by developments over the past six months. They include a downturn in expected oil prices, an election in the US that has raised the prospects for accelerated US oil and gas E&D, a continued inability of Petrobras to regain traction following the corruption scandal, a more rapid expected increase in cost of capital and a faster pace of rebound in oil company capital spending. Given the changes, we provide an updated projection of orders over the 2017/21 time period. We also provide a list of more than 70 FPSO/FPU projects likely to move to the contracting stage over the next five years -- segmented into three time periods. In the data section of the report are details for 199 floater projects in the planning stage, 48 production or storage floaters now on order, 294 floating production units currently in service and 28 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 March.
February 2017 Monthly Floating Production Systems Report
February 21, 2017 - Update
The February WER report highlights the narrow range in which crude prices have been trading since OPEC implemented production cuts and discusses the outlook for breakout from this range over the several years. We provide details for several recent production floater LOIs, including an LOI for an FPSO for use offshore Vietnam and an LOI for up to seven regas carriers capable of use on future FSRU contracts. We also review the local content dispute that has stopped Petrobras from awarding the Libra Pilot and Sepia FPSO EPC contracts -- a dispute that will be difficult to resolve under the present social and political dynamics in Brazil. In the data section of the report are details for 198 floater projects in the planning stage, 48 production or storage floaters now on order, 293 floating production units currently in service and 28 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 February.
January 2017 Monthly Floating Production Systems Report
January 20, 2017 - Update
The January WER report highlights the EPC contract just placed for an oil production floater, the first EPC contract for a major FPU since the contracting hiatus began in mid-2015. Also in the report are details for an FSRU ordered for use in India and a small FSRU ordered for Indonesia. We provide an update of the status of a pending FLNG award and review the future status of Petrobras’ serial FPSO hull program. In the data section of the report are details for 201 floater projects in the planning stage, 51 production or storage floaters now on order, 288 floating production units currently in service and 28 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 17 January.
December 2016 Monthly Floating Production Systems Report
December 20, 2016 - Update
The December WER report examines whether OPEC’s decision to limit crude production could help accelerate deepwater project starts over the next 12 to 24 months, given 3 billion barrels of oil stocks in global inventory and 5000+ drilled-but-uncompleted shale wells in the US ready to be fracked. We also review BPs decision to sanction the Mad Dog 2 deepwater GOM project, assess Hoegh and Maran’s orders for seven speculative FSRUs, discuss Petrobras continuing difficulties getting back to orderly business conditions and profile the energy industry “dream team” about to take cabinet positions in the incoming US administration. In the data section of the report are details for 200 floater projects in the planning stage, 54 production or storage floaters now on order, 284 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 December.
November 2016 Monthly Floating Production Systems Report
November 22, 2016 - Update
The November WER report looks at the impact that the US election will have on oil and gas development and the extent to which deepwater will benefit or lose as a consequence of the incoming US administration policies. We also highlight the growing magnitude and competitiveness of US shale development -- which is increasingly threatening future deepwater capital spending – and identify the five floater projects next in line to become EPC contracts. In the data section of the report are details for 198 floater projects in the planning stage, 51 production or storage floaters now on order, 284 floating production units currently in service and 25 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 November.
2017 Floating Production Systems Forecast
October 1, 2016 - Annual
The WER 2017 Annual Forecast Report (1) presents a detailed analysis of the business drivers that will shape the global deepwater business environment over the next five years and (2) provides our forecast of floating production system orders to be placed between 2017 and 2021. This is our 20th annual forecast of floating production system orders. The new forecast is segmented into five types of production units -- FPSOs, FPUs (production semis, TLPs, spars, barges), FLNGs, FSRUs and FSOs – and we project the number of units to be ordered, composition of the orders and capex to be generated in each segment. An objective, bottom-up forecasting methodology is employed, using projects in the planning stage and our assessment of underlying business conditions as the basis for projecting equipment orders over the 2017/21 time frame. In the data section of the report are details for 197 floater projects in the planning stage, 54 production or storage floaters now on order, 284 floating production units currently in service and 34 production floaters available for redeployment contracts. Charts depict the location where floating production and storage systems are being planned, operating and being built. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 27 October 2016.
September 2016 Monthly Floating Production Systems Report
September 20, 2016 - Update
The September WER report provides an overview of the three FSRUs and FSO contracted over the previous month. We also review the sequence of events leading to Petrobras cancelling the Libra Pilot and Sepia FPSO tenders and describe plans to restart the competition with revised rules. In the data section of the report are details for 194 floater projects in the planning stage, 55 production or storage floaters now on order, 281 floating production units currently in service and 31 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 September.
August 2016 Monthly Floating Production Systems Report
August 17, 2016 - Update
The August WER report has an up-to-date overview of the FSRU sector. The floating regasification sector has been a bright light in an otherwise difficult market over the past 18 months. In the report we provide an overview of the 20 FSRU installation now in operation, 10 FSRUs currently on order and 30 new projects now in the planning stage that potentially require an FSRU. In the data section of the report are details for 240 floater projects in the planning stage, 54 production or storage floaters now on order, 281 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 17 August.
July 2016 Monthly Floating Production Systems Report
July 28, 2016 - Update
The July WER report has an up-to-date overview of the FLNG sector. This sector has been hit by the global LNG oversupply and depressed LNG pricing -- which has impacted investment in new land and floating LNG production facilities. We provide details for the two FLNGs completed over the past quarter, profile the six FLNGs now on order and assess whether several of these orders could be cancelled if market conditions do not improve. We then provide details for the Coral FLNG about to be contracted for use in Mozambique, profile 23 floating liquefaction projects now in various stages of planning and assess the likely timing of FLNG contracts on these projects given expected market conditions. In the data section of the report are details for 241 floater projects in the planning stage, 53 production or storage floaters now on order, 281 floating production units currently in service and 29 oil/gas production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 July.
June 2016 Monthly Floating Production Systems Report
June 19, 2016 - Update
The June WER report describes changes in the development plan and contracting strategy in several near term floater projects, reviews the contractual implications of a premature arrival of an FSRU in Ghana where offtake infrastructure has not yet been built and provides background for Petrobras’ request for revised bids on the Libra Pilot and Sepia FPSOs and questions whether one or both tenders will be cancelled. We also update the underlying market fundamentals, which continue to strengthen. In the data section of the report are details for 246 floater projects in the planning stage, 55 production or storage floaters now on order, 281 floating production units currently in service and 36 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 19 June.
May 2016 Monthly Floating Production Systems Report
May 25, 2016 - Update
The May WER report examines the timing of future production floater contracts given the continuing rebound in crude prices, highlights several developments that could suggest a reversal of Petrobras’ downturn is underway and provides our assessment of the likelihood that 17 FPSOs now being marketed for redeployment will land field contracts over the next few years. In the data section of the report are details for 243 floater projects in the planning stage, 58 production or storage floaters now on order, 278 floating production units currently in service and 36 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 May.
April 2016 Monthly Floating Production Systems Report
April 27, 2016 - Update
The April WER report updates the status of the bidding process for two FPSOs to be contracted by Petrobras, discusses the Excelerate FSRU deal in Bangladesh and looks at the continued ramp upwards in oil prices. In the data section of the report are details for 242 floater projects in the planning stage, 62 production or storage floaters now on order, 280 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 April.
March 2016 Monthly Floating Production Systems Report + Revised Five Year Forecast
March 21, 2016 - Update
The March WER report recalibrates the 2016/20 forecast of production floater orders made last October. The orders forecast is reduced 12% based on the deterioration in market conditions over the past six months. Oil prices have fallen more than anticipated, upstream investment spending has been significantly cutback, short cycle upstream projects have risen in priority, Petrobras continues to decline and FLNG projects have had several setbacks. But we still see more than 80 production floater contracts over the next five years. Backing up the revised forecast is an up-to-date listing of the projects we see leading to a production floater contract (1) over the next 18 months, (2) within the next 18 to 36 months and (3) 36 to 60 months out. In the data section of the report are details for 242 floater projects in the planning stage, 62 production or storage floaters now on order, 280 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 21 March.
February 2016 Monthly Floating Production Systems Report
February 22, 2016 - Update
The February WER report looks at the future prospects of three FPSOs recently released from field, describes the competition for an elusive West African FSRU contract, reviews Hoegh’s decision to join Excelerate in exiting the FLNG market, assesses Petrobras timing and ability to proceed with two pre-salt FPSO tenders and discusses Chevron’s rationale in cancelling a GOM ultra-deepwater project. In the data section of the report are details for 257 floater projects in the planning stage, 62 production or storage floaters now on order, 280 floating production units currently in service and 30 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 February.
January 2016 Monthly Floating Production Systems Report
January 22, 2016 - Update
The January WER report provides details for the Sea Lion FPSO FEED contract, profiles two FLNGs about to be completed, discusses the impact of the oil price collapse on deepwater investment decisions, updates the Petrobras situation and looks at ConocoPhillips’ decision to exit deepwater exploration. In the data section of the report are details for 255 floater projects in the planning stage, 65 production or storage floaters now on order, 281 floating production units currently in service and 27 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 January.
December 2015 Monthly Floating Production Systems Report
December 22, 2015 - Update
The December WER report provides details for the LNG FSU ordered for storage use in Bahrain, questions whether the Ghana FSRU terminal contract could have reopened, discusses the continues downward trend of Petrobras and profiles two recent field closures that offer cautionary tales for FPSO lenders and GOM lease holders. In the data section of the report are details for 252 floater projects in the planning stage, 72 production or storage floaters now on order, 275 floating production units currently in service and 27 production floaters available for redeployment contracts. Charts in the report depict the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 22 December.
November 2015 Monthly Floating Production Systems Report
November 24, 2015 - Update
The November WER report identifies FPSOs likely to come off-field in 2016 and profiles their suitability for redeployment. Details are provided for two new FSRU terminal contracts and we discuss the risk premium on future FPSO leases backed by a long term Petrobras lease. In the data section of the report are details for 251 floater projects in the planning stage, 71 production or storage floaters now on order, 275 floating production units currently in service and 27 production floaters available for redeployment contracts. Charts in the report depict the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 November.
October 2015 Report - Five Year Forecast of Production Floater Orders
October 27, 2015 - Annual
The WER 2016 Annual Forecast Report (1) presents a detailed analysis of the future business environment likely to prevail in the global deepwater sector through 2020 and (2) provides our forecast of floating production system orders to be placed over the next five years. The forecast is segmented into eight types of production units -- FPSOs, Production Semis, TLPs, Spars, Barges, FLNGs, FSRUs and FSOs – and we project the number of units to be ordered, composition of the orders and Capex to be generated. A realistic, bottom-up forecasting methodology is employed, using projects in the planning stage and our assessment of underlying business conditions as the basis for projecting equipment orders over the 2016/20 time frame. This is IMA’s 19th annual forecast of floating production system orders since IMA began the floater forecasts in 1996. In the data section of the report are details for 247 floater projects in the planning stage, 69 production or storage floaters now on order, 279 floating production units currently in service and 23 production floaters available for redeployment contracts. Charts depict the location where floating production and storage systems are being planned, operating and being built.
September 2015 Monthly Floating Production Systems Report
September 25, 2015 - Update
The September WER report provides known details for the Culzean FSO contract, summarizes Excelerate’s reason for terminating the Lavaca FLNG project, profiles how futures traders see Brent around $63 at end of the decade and discusses the continuing financial deterioration of Petrobras. Also in the report is a market share breakdown of classification societies in the FPSO sector. In the data section of the report are details for 247 floater projects in the planning stage, 69 production or storage floaters now on order, 279 floating production units currently in service and 23 production floaters available for redeployment contracts. New to this issue is the unique IMO number for each production and storage unit in service, on order and available. Charts depict the location where floating production and storage systems are being planned, operating and being built. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 Septembe
August 2015 Monthly Floating Production Systems Report
August 20, 2015 - Update
The August WER report provides known details for two FPSO tenders about to be released by Petrobras, describes the FSRU contract awarded to BW Group in August and assesses whether the suspended Rosebank FPSO contract could be soon reactivated. In the data section of the report are details for 246 floater projects in the planning stage, 70 production or storage floaters now on order, 276 floating production units currently in service and 24 production floaters available for redeployment contracts. New to this issue is the production start date (month/year) for all production and storage units in operation – and we identify the likely scrap candidates among the units currently off field. Charts depict the location where floating production and storage systems are being planned, operating and being built. Information is current as of 20 August.
July 2015 Monthly Floating Production Systems Report
July 21, 2015 - Update
The July WER report examines the impact of the 2015 Petrobras investment plan on FPSO contracts over the next several years. Also included is an overview of ownership of FPSOs by leasing contractor and field operator – and we profile the growth in FPSOs in service and orders for FPSOs over the past ten years. In the data section of the report are details for 244 floater projects in the planning stage, 70 production or storage floaters now on order, 261 oil/gas floating production units and 15 floating regas units currently in service and 24 production floaters available for redeployment contracts. Charts depict the location where floating production and storage systems are being planned, operating and being built. Information is current as of 20 July.
June 2015 Monthly Floating Production Systems Report
June 18, 2015 - Update
The June WER report provides up-to-date details for 241 floater projects in the planning stage, 73 production or storage floaters now on order, 261 oil/gas floating production units and 15 floating regas units currently in service and 24 production floaters available for redeployment contracts. Charts depict the location where floating production and storage systems are being planned, operating and being built. In the analysis section is a review of recent production floater orders and an update of the evolving Petrobras recovery. Information is current as of 17 June.
May 2015 Monthly Floating Production Systems Report
May 18, 2015 - Update
The May WER report updates the near term market outlook and profiles 30 floating production projects likely to evolve into major equipment contracts over the next 18 months. In the data sections of the report are details for 238 floater projects in the planning stage, 72 production or storage floaters now on order, 262 oil/gas floating production units and 15 floating regas units currently in service and 25 production floaters available for redeployment contracts. Charts depict the location where floating production and storage systems are being planned, operating and being built. Information is current as of 18 May.
April 2015 Monthly Floating Production Systems Report
April 20, 2015 - Update
The April WER report provides details for 239 floater projects in the planning stage, 69 production or storage floaters now on order, 265 oil/gas floating production units and 15 floating regas units currently in service and 25 production floaters available for redeployment contracts. New to this monthly report is a detailed map summarizing where floating production and storage systems are now being built. The report also includes an update of the Petrobras situation (which could be easing) -- plus information on the Shell acquisition of BG, the creditor seizure of OSX 3 and the bumpy start-up of the new FSRU terminal in Pakistan. Information is current as of 17 April.
March 2015 Monthly Floating Production Systems Report
March 26, 2015 - Update
The March WER report recalibrates the 2015/19 forecast of production floater orders made last October. A combination of a 45% drop in oil prices and an unexpected meltdown of Petrobras have shaken the foundation of the floating production market. As a result around 20% of floating production project starts forecast last October now look likely to be deferred beyond the five year forecast period. Details are provided in the report. Also included in the report are details for 237 floater projects in the planning stage, 73 production or storage floaters now on order, 260 oil/gas floating production units and 15 floating regas units currently in service and 23 production floaters off field and available for redeployment contracts. Information is current as of 18 March.
February 2015 Monthly Floating Production Systems Report
February 23, 2015 - Update
The February WER report identifies and updates details for 244 floater projects in the planning stage, 71 production or storage floaters now on order, 260 oil/gas floating production units and 15 floating regas units currently in service and 23 production floaters off field and available for redeployment contracts. Information is current as of 15 February. Also in the report are details for a gas/condensate FPSO ordered during the preceding month, description of two near term FSRU planned projects, delay of an FLNG project resulting from lower LNG prices and the decommissioning of an FPSO.
January 2015 Monthly Floating Production Systems Report
January 15, 2015 - Update
The January WER report identifies and updates details for 241 floater projects in the planning stage, 74 production or storage floaters now on order, 259 oil/gas floating production units and 13 floating regas units currently in service and 23 production floaters off field and looking for redeployment contracts. Information is current as of 15 January. Also in the report is a recap of activity in 2014, providing details for 25 production and storage floaters ordered during the year, and our outlook for production floater orders in 2015.
December 2014 Monthly Floating Production Systems Report
December 1, 2014 - Update
The December WER report identifies and updates details for 245 floater projects in the planning stage, 72 production or storage floaters now on order, 259 oil/gas floating production units and 13 floating regas units currently in service and 25 production floaters off field and looking for redeployment contracts. Information is current as on 19 December. Also in the report are details for several production floaters ordered since November, a review of the risk to near term orders from the Petrobras investigation and the impact the oil price collapse is having on floater investment decisions.
November 2014 Monthly Floating Production Systems Report
November 1, 2014 - Update
The November WER report identifies and updates details for 244 floater projects in the planning stage, 74 production or storage floaters currently on order, 258 oil/gas floating production units and 13 floating regas units currently in service and 25 production floaters off field and looking for redeployment contracts. Information is current as of 25 November. Also in the report is a recap of activity over the past month and an analysis of the impact of the Petrobras implosion and oil price downturn on near term demand for new equipment.