February 2020 Monthly Floating Production Systems Report
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.