South America Fuels Booming FPSO Market

A renaissance is on the horizon.
The global market for floating production, storage and offloading (FPSO) vessels is booming, according to energy research firm Rystad Energy.
Back in February, Rystad forecasted that 33 FPSOs would be sanctioned from 2019-2021.
In a report released Tuesday, Rystad said as many as 24 FPSOs are expected to be awarded by 2020.
“The ongoing upswing in newly sanctioned FPSO projects points to a brighter future for the FPSO market,” said Rystad’s head of oilfield services research Audun Martinsen. “Offshore operators are finding their footing again after the downturn of 2014, as a robust rise in free cash flow has fueled a significant uptick in deepwater investments.”
And South America is driving demand.
South America has 12 sanctioned FPSO projects planned by the end of 2020, followed by Asia (four), Europe (3), Africa (3) and Australia (2), according to Rystad.

Brazil is set to award seven more FPSOs in 2020, which would lead the country to account for more than one-third of awards anticipated globally in 2019 and 2020.
The seven projects already confirmed in 2019 represent production capacities of more than 700,000 barrels of oil per day and around 60 million cubic meters of gas per day.
GlobalData also reported last month that Brazil would lead the global FPSO market until 2025.
Rystad also noted Brazil’s recent relaxation of local content regulations, which has caught the attention of new international players.
“Brazil’s greater competitiveness on a global scale is a driver behind such huge FPSO awards, along with the region’s recovery from the Car Wash corruption scandal, Petrobras’ debt reduction, substantial pre-salt discoveries and healthier oil prices,” Martinsen said. “These positive factors also add greater certainty to project timelines, and we no longer believe Petrobras’ developments will be subject to lengthy delays.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Oil Prices Have Been in Turbulent Downtrend Since Mid-2022
- How Critical Is Cyber Security for Offshore Oil and Gas Installations?
- UK Prime Minister Creates New Energy Security Dept
- Warmer Start To 2023 Drops US Natural Gas Price Forecast
- Calls For New Global Profits Windfall Taxes Are Misleading, OEUK Said
- Chinese Wind Companies Set For Expansion
- USA EIA Reveals Latest Oil Price Forecast
- US Gas Producers Looking To Diversify With LNG Exports
- India Rushes to Long-Term LNG Deals
- 3 Climate Takeaways From Biden's Second State of the Union
- Shell CEO Says World 'Desperately In Need' Of Natural Gas
- Fate Of $8Bn Alaska Oil Project To Be Resolved In Next 30 Days
- What Would War-End Mean for Global Oil and Gas?
- OPEC+ Exports Show Russia Surges While Saudi Arabia Dials Back
- Gov't Tampering Puts Australian Gas Market In Unenviable Position
- Fed Will Be One Of The Leading Oil Price Drivers in 2023
- Signs of Progress at Freeport LNG
- Lukoil Hits 50 Million Tons Of Hydrocarbon Production In Caspian Sea
- Oil Posts Second Weekly Loss as Stockpiles Swell
- Texas Power Outages Increase As Ice Storm Persists
- Valaris Employee Reported Missing from Rig
- Gasoline and Diesel Prices Expected to Fall
- New SPR Bill Passes House
- Is the USA Shale Boom Over?
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Iran Oil Gushes Into Global Market
- What Bad Habits Should Oil and Gas Jobseekers Avoid?
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt