Floating Production Storage and Offloading (FPS & FPSO) Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Floating Production Storage and Offloading

• The global FPSO demand market is expected to reach $44.12 billion by 2022, with a CAGR of 14.42 percent
• Discovery of deep water assets in offshore Africa, Brazil, and Guyana will be driving the demand for FPSO

FPSO Demand Forecast 2021: Global

• The global oil & gas FPSO demand market is estimated to be $28.01 billion in 2018, it is forecasted to reach $44.12 billion by 2022, with an estimated CAGR of 14.42 percent
• With increase in crude prices, demand for FPSO is expected to increase over the next three years
• Discovery of deep water assets far-off from the coasts is expected to be the key behind the demand increase in the  upcoming years

Global FPSO Market Size by Region: 2017

• Africa has surpassed South America and Asia to be the largest market for FPSO
• FPSO market across Africa, Asia, and South America constitute to 74 percent of the global FPSO market
• Petrobras, CNNOC, Total, ExxonMobil, Chevron, Shell, and BP are the major buyers of FPSO service, and they constitute to 55 percent of the total global demand

Discovery of deep water assets will be a key reason behind the increase in demand. However, the supply market is expected to be surplus in nature, irrespective of the crude price recovery, due to medium demand in the market for FPSO service.Therefore, client can look to engage with supplier on long term basis

FPSO Demand by Countries

• Brazil is the largest market for FPSO on a country level.Development of new offshore fields is the key driver for the FPSO demand
• China and UK collectively constitute to about 22 percent of the FPSO demand on a country level
• Angola and Nigeria are the major FPSO markets in Africa

FPSO Demand by Oil Companies

• Petrobras is the single largest operator of FPSO vessels globally
• Other major oil companies, namely CNOOC, Shell, Total, Exxon Mobil, operate around 20 percent of FPSO fleet
• The rest of the fleet is operated by independent and smaller oil companies

Growth Drivers 2018: Global

New offshore discoveries, increase in spend from E&P companies, and changes in regulations are set to drive the demand for FPSO

New offshore discoveries and development

• New discoveries of deep water fields in offshore of Africa, Brazil, and Guyana are the key drivers for the demand of FPSO
• Offshore Guyana is forecasted to have a demand for five FPSOs, as estimated recoverable resources have risen by 25 percent

Increasing oil price

• Higher oil price in H1 2018 is encouraging the E&P companies to develop the deep water assets

Changes in regulations

• New energy policy enacted by the Brazilian government to increase production from pre-salt basins in offshore
• This is likely to increase the demand by 30 percent in the Brazilian market alone

Growth Constraints 2018: Global

 Environmental concerns are seen as the hindrance in developing the offshore assets

Environment concerns

• Increase in environmental concern in developing the offshore assets is seen as the hindrances by oil companies

Increase in FPSO day rates

• Following the increase in demand, the day rates of FPSO are expected to increase