Asia Leads the Way on Floating Production Systems

Infield Systems Limited is pleased to announce the publication of this, the fifth edition of the Global Perspectives Floating Production Systems Market Update, which provides an in-depth analysis of this market sector for the period 2004 to 2013.

Yanina Pavlova, Infield's Analyst & Lead Author said, "Over the period 2009 through to 2013, we forecast that the total global floating production systems market is set to exceed US$85bn, which is an increase of US$32bn over the previous five years."

She went on to add, "Even taking into account recent market turmoil, project delays and deferrals, over the period a total of 229 units are expected to be installed with Asia (61) leading the way with Latin America (46) and Africa (43) following. As expected Petrobras is the most active player with an expected US $15bn expenditure, followed by Total, Chevron, Shell, ExxonMobil and BP.

"FSPO's will command the majority of the expenditure within this sector with expenditure likely to be US$48.6bn of which 45% will be new builds and 55% conversions," she concluded.

There are currently three main interrelated areas of concern in the contemporary global oil and gas market: potential future under-investment, declining revenues of oil and gas companies due to falling oil prices and the credit crunch leading to recall or repayment of loans as well as the lack of financing.

However, it is important to distinguish between the short-term and long-term prognoses for the industry. The lack of credit and a falling oil price are considered short-term. Longer term, it is expected that new offshore oil and gas developments will continue to face strong market fundamentals. A tightness in supply and decreasing reserve replacement ratios means that accessing new hydrocarbon reserves will remain a priority for oil companies even if demand stays stationary.

Under these circumstances the industry is moving towards deep and ultra-deepwater developments in much more severe environments demanding the use of advanced technology. Deepwater activity is forecast to grow and this is a crucial factor for floating production market growth.

Over the past five years we have seen the growth of capital expenditure in this market. During the forecasting period 2009 to 2013 we expect further capital intensive technological developments associated with deep and ultra-deepwater projects coupled with an increase in the number of floating production units planned to be installed.

The markets profiled in the new Floating Production Systems Market Update Report focus upon the four main designs of floating production platforms. Out of the markets for FPSOs, Spars, TLPs and semi-submersibles, the FPSO market is the largest. This reflects the advantages it offers over other development solutions. Speculatively built FPSOs, the FPSO leasing market and yard availability are some of the issues discussed in detail within the report.

The future for the floating production systems industry is still expected to be strong with a variety of water depths, project sizes and locations expected over the next five years. For more information please see the Global Perspectives Floating Production Systems Market Update 2009/13 Report.

Please note that the new edition differs from the previous editions in that the report now covers such additional issues as yards availability, key operators and the FPSO leasing market.