Floating Production Sector Mildly Optimistic about Growth

Still, some decisions did pan out in favor of the FPS sector such as the Browse LNG project in Australia. The Browse joint venture has commenced a basis of design work in relation to an FLNG development concept for the project.

“In 2013 we made disciplined investment decisions, including our decision not to proceed with the [onshore] James Price Point development concept for Browse because it did not meet our commercial requirements for a positive investment decision,” Woodside CEO Peter Coleman said in a Feb. 19 press release.

With the trend towards developing larger upstream developments in deeper waters, the FPS “industry will need to continue innovating in order to economically produce offshore hydrocarbons,” EMS commented.

While major players such SBM Offshore, BW Offshore and MODEC are expected to continue dominating larger FPS projects, it would be interesting to see whether mid-sized competitors are able to close the gap with their larger counterparts in the next few years. Otherwise, the industry may see the maintenance of the status quo in the FPS industry, where intense competition exists for mid-scale and small-scale projects.

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