September 2020 Monthly Floating Production Systems Report
Rebalancing the oil market and reinvigorating upstream investment is proving difficult. A new wave of virus infections over the past month has lowered projections for near term growth in oil demand. OPEC+ easing of production constraints raised crude supply beginning August. Oil inventory remains stubbornly high and slower demand growth + increased supply will slow rebalancing. Crude prices, which had risen to the mid-$40s last month, are again back in the low $40s -- and most field operators continue to hold onto cash, defer investment decisions. But Petrobras continues to be a bright light in an otherwise subdued production floater market. In September Petrobras said it is negotiating with SBM to lease a 6th FPSO for use on the Buzios complex in Santos Basin. The contract was expected to be tendered to several contractors in usual fashion – but SBM was the only contractor capable of supplying the large FPSO in the time frame Petrobras requires. All is discussed in the September WER report. Also in the data section of the report are details for 196 floater projects in the planning stage, 43 production or storage floaters now on order, 303 floating production units currently in service and 41 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 23 September.