April 2023 Monthly Floating Production Systems Report
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.