July 2019 Monthly Floating Production Systems Report
Our July WER floating production report highlights the large number of FPSO projects that are approaching final investment decision. Assuming no major shock in the underlying market, around two dozen FPSO contracts are in line for award over the next 18 to 24 months. Whether the supplier base is capable of taking on all of these projects within this time frame is an issue. Growing backlog is already forcing major FPSO contractors to be increasingly selective in bidding on new contracts. Meanwhile oil prices have trended in the mid $60s over the past month -- as excess crude inventory and concern over future demand/supply growth has (so far) offset risk escalation in the Mideast that in the past would have sent crude prices soaring. All is discussed in the July report. Also in the data section of the report are details for 222 floater projects in the planning stage, 48 production or storage floaters now on order, 300 floating production units currently in service and 32 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 22 July.