November 2017 Monthly Floating Production Systems Report
As detailed in the November WER report, ordering activity for production floaters continues to accelerate. In mid-November Statoil selected Sembcorp for a $490 million contract to build the FPSO hull for the Johan Castberg field in the Barents Sea. This order brings the number of FPSO contracts to nine so far in 2017 – vs. three in 2015 and none in 2016. A second FPSO contract, for the North Sea Penguins field, is widely rumored to be near contract award, with Fluor as the EPC contractor. Meanwhile global oil demand/supply continues to rebalance, Brent spot crude has climbed into the low $60s, tensions in the mid-east have escalated and the major producers look likely to extend the output agreement – but the futures market continues to see Brent crude priced in the upper $50s five to seven years out. In the data section of the report are details for 220 floater projects in the planning stage, 50 production or storage floaters now on order, 298 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 20 November.