August 2020 Monthly Floating Production Systems Report
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.