April 2021 Monthly Floating Production Systems Report
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.