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FPSO Prospects Look Promising for 2020

The global market for Floating Production, Storage and Offloading vessels (FPSOs) is headed for a major recovery, with as many as 24 awards expected by 2020 year end. As Audun Martinsen, Rystadt Energy’s Head of Oilfield Services Research states, “offshore operators are finding their footing again after the downturn of 2014, as a robust rise in free cash flow has fuelled a significant uptick in deep water investments.”  The Norwegian consultancy expects the market to grow from around  $19.5 billion in 2019 to $26 billion by 2024, reflecting high demand from Brazil and Mexico, a return to offshore exploration and production and especially, exploration in deep and ultra-deep waters, states a recent Market and Markets 2019 report. “The opportunities are out there,” states Richard Ella, of SBM Offshore.   

The world’s first oil FPSO in 1977 was used on the Shell Castellon field in the Spanish Mediterranean and there are now almost 300 FPSOs operating around the world and as of July this year, 32 FPSOs were ready for redeployment to other oilfields.

What are they for?

Thanks to their built-in storage capacity, FPSOs are traditionally used for large-scale deep-water oilfield production where a fixed platform and take-away pipeline infrastructure is either impractical or too expensive. Read more

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