March 2021 Monthly Floating Production Systems Report
Crude is trading in the $60s, reflecting the gradual recovery of global oil demand and OPEC+ curtailment of oil supply. But crude prices are now a bit lower than last month and crude inventory has been creeping higher. Brent is trading around $64 – down from almost $70 in early March -- and US crude inventory is now 6% above seasonal level. Despite a few negatives, there continues to be wide expectation that global oil demand will rebound sharply over the next few years as the Covid crisis recedes into the past. Meanwhile, orders for production floaters have bounced back over the past month. Three production floaters have been ordered since late February. BW Offshore received a contract to supply the Barossa FPSO, SBM signed an LOI to supply the Buzios #6 FPSO and CNOOC/Cenovus ordered a new-build production barge to use on a gas field offshore Indonesia. In other news, Petrobras has been rattled by board resignations as a fallout of a continuing concern over government interference. All is discussed in the March WER report. Also in the data section of the report are details for 206 floater projects in the planning stage, 44 production or storage floaters now on order, 307 floating production units currently in service and 44 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 26 March.