October 2022 Monthly Floating Production Systems Report
Oil prices regained strength over the past month as supply disruption pressures trumped global economic demand concerns. Brent spot crude returned to the low-$90s and crude five years out in the futures market increased to the lower $70s. Third quarter earnings reports of upstream operators were very positive – almost embarrassingly high. ExxonMobil, for example, set a new quarterly earnings record. While major upstream operators continue to talk about capital discipline, the huge inflow of cash is slowly forcing capital spending to grow. The queue of near-term production floater contracts has remained close to 40 units. Meanwhile, in October ExxonMobil selected Modec for the next Stabroek block FPSO contract, Petrobras started the tender process for two FPSOs and NFE contracted with Sembcorp to convert two cylindrical drill rig hulls into FLNGs. And separately, NFE firmed a deal with Comisión Federal de Electricidad to jointly develop a new LNG export hub in shallow water off the coast of Altamira, Mexico. All is discussed in WER's October floater report. Also in the data section of the report are details for 200 floater projects in the planning stage, 75 production or storage floaters now on order, 309 floating production units currently in service and 22 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 31 October.