January 2021 Monthly Floating Production Systems Report
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.