The global FPSO market is currently experiencing significant growth owing to exploration success in new areas, such as Namibia's Orange Basin and the East Mediterranean, continued capital spending by oil majors on exploration in deepwater, depleting onshore oil fields, and rising global oil and gas prices.
Furthermore, the increasing energy demand, coupled with the ability of FPSOs to function without a fixed structure, the capability of storage, and offloading oil, is augmenting the demand for FPSOs globally.
The term floating production storage and offloading (FPSO) refers to a vessel that is situated close to an offshore oil field and serves as a processing and storage facility for crude oil up until the point at which it can be transferred to a shuttle tanker for transportation to a different location for further processing.
In newly formed offshore fields without pipeline infrastructure or in remote areas where constructing a pipeline would be prohibitively expensive, FPSOs are particularly helpful. A tanker doesn't have to wait while the production facility produces enough oil to fill it, due to the utilization of FPSOs. The ability to relocate the floating production storage and offloading vessel to a new place when an oil field has run out is another benefit of FPSOs versus pipelines.
FPSOs are appropriate for a variety of water depths (deepwater, and ultra deep water) and environmental conditions and can be built to remain in a specific location for up to 20 years of continuous operation. FPSOs are currently the crude oil industry's preferred offshore production technology due to their increased flexibility and adaptability.
The rapid recovery of the oil and gas industry post-Covid-19 pandemic downturn and increasing investments in deep water exploration and production activities due to the energy security issues triggered by the Russian-Ukraine conflict are currently driving the demand for FPSOs globally.
However, the high capital requirement, long building periods, and the development of offshore pipeline infrastructure might restrain FPSO market growth.
According to Blackridge Research and Consulting, exploration companies are currently giving precedence to the offshore sector as they seek to discover new resources. Their focus is on capitalizing on underexplored or frontier areas in order to access untapped reserves, even if it involves high-risk and higher-cost offshore developments. The offshore industry has absorbed approximately 95% of exploration spending in the current year so far. However, it's noteworthy that it has accounted for only about two-thirds of the volumes that have been discovered.
The FPSO market faces constraints due to limited shipyard capacity, causing delays and cost concerns. Intense competition for yard space with other construction projects exacerbates these challenges. In response, some E&P companies are revising their FPSO procurement strategies, focusing on early planning, exploring alternative yards, and implementing flexible contracts. These measures aim to mitigate the risk of delays and cost overruns while ensuring timely and cost-effective FPSO deployment in a competitive offshore energy sector.
South America, Asia-Pacific, and West Africa are the major regions that are expected to dominate the global FPSO market during the forecast period.
The growing Brazil FPSO market was a major driver of growth for the South America FPSO market, with seven of the country's 10 contract awards coming from Brazilian projects in 2021. With the addition of three more FPSOs in 2022, the South American country is a leading nation in global FPSO contract awards.
Guyana, a participant in the South America FPSO market, added one FPSO to the global total in 2022, while the UK added two projects. It is anticipated that Angola, Australia, China, and Malaysia will all award one new FPSO contract.
In terms of FPSO building, China takes the lead. In the past, the major drydocks in South Korea, such as Samsung, Daewoo, and Hyundai, were the primary builders of large and intricate FPSOs. However, they have been overtaken by Chinese shipyards, which have outperformed them in terms of pricing and delivery speed.
In the conversion segment of the market, Singaporean yards like Sembcorp and Keppel used to dominate, but they are now encountering formidable competition from Chinese counterparts as well. This shift in the competitive landscape highlights China's growing prominence in the global FPSO industry, both in terms of new construction and conversion projects.
COVID-19 and the falling oil price were a double blow for the FPSO industry, which was suffering the aftershocks of a turbulent market. To keep costs down, FPSO production businesses concentrated primarily on transforming existing tankers into FPSOs.
Due to the COVID pandemic, the major under-construction projects to build floating production, storage, and offloading (FPSO) vessels were delayed in China, South Korea, and Singapore owing to staffing and supply shortages.
The global FPSO market looks strong amid current market conditions, with strong demand for floating production storage and offloading units driven by the need to tap offshore oil and gas reserves. Brazil and Guyana continue to dominate the market, with numerous projects expected in these regions. Namibia is emerging as a new hotspot, signifying the industry's exploration of untapped regions.
However, capacity constraints in China, the primary destination for FPSO construction and conversion, could lead to delays and competition for resources. Additionally, technological advancements, environmental concerns, and regulatory changes are shaping the industry's landscape.
In the prevailing circumstances, converted vessels hold a prominent position in the market, primarily due to the speed advantage they offer. In an industry prone to oil price fluctuations, the ability to swiftly tap into oil reserves is a critical driving force. Conversion enables operators to realize faster returns on their capital investments, making it a favored choice for addressing the industry's demand for agility and profitability.
Blackridge's report provides insights into the current global and regional market demand scenario and its outlook. The study offers a detailed analysis of various factors instrumental in affecting FPSO market growth. It provides a perspective on various market opportunities and threats and a detailed analysis of the floating production storage and offloading market's competitive landscape.
The new report from Blackridge Research on the Global Floating Production Storage Offloading FPSO Market comprehensively analyzes the FPSO market dynamics and provides deep insight into the current and future state of the industry.
The study examines the drivers, restraints, and regional trends influencing global FPSO market demand and growth.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the global FPSO market, as well as important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players.
Further, the report will also provide global FPSO market CAPEX, demand forecasts, and growth rates.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will functions as a guide for you to analyze the degree of impact.
This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.
This section provides an assessment of the COVID-19 impact on global floating production storage and offloading market demand.
The report provides global FPSO market CAPEX and demand forecasts until 2028, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of the global FPSO industry supply chain, its structure, and the participants.
Using Porter's five forces framework, the report covers an assessment of the global FPSO industry's state of competition and profitability.
The report dissects the Global Floating Production Storage and Offloading (FPSO) Market into various segments based on construction type (new build ship, converted ship/hull), water depth (shallow water, deep water, ultra deep water), and hull type (single hull, double hull).
Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, global market capex (size), demand forecast, and growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America - United States, Canada, Mexico, and the Rest of North America
Europe - The United Kingdom (UK), Denmark, Norway, Russia, and the Rest of Europe
Asia Pacific - China, India, Japan, South Korea, Australia, and the Rest of APAC
South America – Brazil, Venezuela, Guyana, and the Rest of South America
Middle East & Africa - Nigeria, South Africa, and other countries
This report presents detailed profiles of major market players in the global FPSO industry. Some of the major companies covered are Bumi Armada Berhad, BW Offshore Limited, SBM Offshore NV, etc. Generally, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the global market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an executive summary chapter and ends with conclusions and recommendations.
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Also, check out our detailed analysis of the FPSO market in various regions (which covers key countries in each region):
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
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