Floating Production Deployments set for Significant Increase in 2014
Douglas-Westwood's NEW World Floating Production Market Report forecasts that
between 2014 and 2018 $99 billion (bn) will be spent on floating production
systems (FPS) - an increase of 138% over the preceding five-year period. The
long-term growth in the sector is underpinned by the continued exploitation of
deep waters, marginal fields and fast-track/short term deployments. Deepwater
FPS deployments are expected to total $68bn in value and account for over
two-thirds of the total spend.
FPSOs form the largest segment of the market (80%) both in terms of units
installed and forecast capital expenditure (Capex) over the 2014-2018 period.
Latin America accounts for 29% of the 139 installations forecast and 38% of
the projected Capex.
The FPS sector recovery following the 2008/2009 downturn continues steadily. A
total of 54 units were ordered in 2011-2013 compared to 23 units ordered
during 2008-2009. There has been little growth in the annual value of
installed units over the last four years; however, 2014 is expected to show a
significant increase in the value of units deployed.
The industry is, however, still coming to terms with a number of demand-side
and supply-side issues. The failure of Brazilian operator OGX in 2013 and the
slow-down in overall upstream expenditure in 2014 will impact the market in
the near-term. Likewise the industry's record in terms of project execution
has been poor, with most projects delivered late and significantly
over-budget. Some industry players are now suggesting a new approach is
Now in its 12th edition, this highly regarded and established report has been
tracking and analysing the industry for over a decade. Douglas-Westwood's
market analysis, commentary and understanding are strengthened by extensive
insight gained from strategy and consultancy work undertaken for major
companies throughout the industry.
- Capex - from 2009 to 2018, segmented by components including hull,
topside modules and mooring systems.
- FPS type - FPSOs, FPSSs, TLPs and Spars.
- Regional analysis - Africa, Asia, Australasia, Latin America,
Middle East, North America and Western Europe.
- Operator analysis - Capex for the leading FPS operators historic,
forecast and by region.
- Deepwater - by FPS type and region.
- Order year analysis - Capex by order year.
- The FPS Supply Chain - detailed analysis of the FPS supply chain,
outlining the EPC firms, shipyards, lease contractors, topside fabricators and
their respective capabilities.
- Leasing & Financing - the issues and future outlook for financing
of the sector; analysis of major leasing contractors, their assets,
profitability (EBIT margins) and a review of prospective vessel redeployments.
- List of prospective FPS units - includes information on all
identified prospects coming onstream from 2014 to 2018 by operator, field,
water depth, type, status, country and prospective year.
Why purchase the Floating Production Market Forecast?
- Unique and proprietary data - updated year-round from published
sources and insight gained from industry consultation.
- Methodology - analysis is based on DW's in-house Oil & Gas database
which details around 700 FPS projects. The data feeds into the market model to
generate forecasts of floating production systems in each region of the world.
Expenditure is allocated both to year of order and year of installation.
- Market forecasts - comprehensive examination, analysis and 10-year
coverage of floating production capital expenditure.
- Concise report layout - consistent with DW's commitment to
delivering value for our clients, all our market forecasts have a concise
layout consisting of industry background and supporting materials condensed to
enable quick review with ‘speed-read' summaries of key points throughout.
- An essential report - for financial institutions, equipment
manufacturers, offshore engineering, construction, operations & maintenance
companies and contractors, oil & gas companies, lease contractors,
shipbuilders and agencies & government departments wanting to make more
informed investment decisions.