June 2023 Monthly Floating Production Systems Report

June 28, 2023

Crude prices remain in the mid-$70s despite efforts by the Saudis to force a price rise by withholding exports. Demand growth concerns have been outweighing supply constraints. The IEA recently predicted that growth in global oil demand will fall off over the next five years, “putting a peak in demand in sight”. Equinor/BP’s recent decision to shelve a planned floater project offshore Canada and Petrobras’ decision to further delay the due date for a floater bid in Brazil are symptoms of supply chain overload. But the list of floater projects in the near term planning stage remains very strong. There continues to be a deep queue of near-term floating production projects. Thirty-five floater projects are lined up for an investment decision within the next 18 months, though supply chain tightness and (maybe) financing access will limit the pace of awards. Meanwhile, SBM’s recent project financing indicates the cost of financing FPSO projects has been increasing.

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