Global Floating Production Storage & Offloading Market - 2022-2029
The global floating production storage & offloading market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).
Offshore oil and gas fields use floating production storage and offloading (FPSO) vessels to collect hydrocarbons from subsea oil reservoirs and transform them into oil, gas and water. The ships hold processed crude oil or natural gas until offloaded onto a shuttle tanker or transferred to refineries via an export pipeline. Pumps, generators, storage tanks, control rooms and lodging facilities are available to assist in extracting and refining oil and gas in remote places at affordable costs. FPSO boats are more flexible, versatile, safe and time-efficient to offer a large storage capacity than conventional offshore oil & gas facilities.
When a current oilfield is depleted, FPSO vessels can be transferred to a new place without the need for costly underwater oil pipelines. As a result, it is gaining traction in frontier areas where local pipeline infrastructure is lacking and smaller oil and gas fields have become dry for years. They are also appropriate for adverse weather situations since they have detachable turret systems that can be withdrawn during an emergency and reattached to continue operations.
The market is expected to develop due to rising demand for offshore exploration and production activities and the exploitation of marginal oil reserves. However, hefty installation costs may stifle expansion during the forecast period.
The rising focus on offshore exploration and production activities
Because of the increased focus on offshore exploration and production activities and increased exploration in deep and ultra-deepwater, the FPSO market is predicted to grow rapidly. As per the International Energy Agency (IEA), annual capital investment in offshore oil and gas production is expected to increase dramatically, boosting industry growth. Furthermore, FPSOs are supported by the exhaustion of onshore oil sources.
The growing demand for integrated compact integrated systems in deep and ultra-deepwater offshore reserves to combat harsh circumstances will boost FPSO market growth in six years. Due to cost-effective and efficient production processes with high yield potential.
The rise in exploitation activities of marginal oil reserves
Increased exploitation of marginal oil deposits in remote offshore areas, along with the ability of FPSOs to work without the help of a fixed structure, are expected to have a favorable impact on market development. For example, an oil field was discovered in Australia's North Western Shelf in 2018. Furthermore, the market is predicted to develop due to the capacity of such units to survive adverse weather conditions.
Other reasons that have aided the growth of the floating production storage and offloading business include marginal fields and difficult conditions. Over the next few years, new E&P activities in offshore shale fields are likely to boost FPSO requirements.
High installation costs
Operational costs were calculated using general operating expenses for facilities and extrapolated for unknown facilities using benchmarks based on facility type, size, production and age. While conceptually simple, an oilfield's risers and flowlines are some of the most crucial components, requiring a high level of technical sophistication and, as a result, a significant capital cost.
COVID-19 Impact Analysis
Amid the COVID-19 epidemic, transportation constraints and strict government restrictions restricting vehicle movement produce a decline in the FPSO business. Oil businesses are dealing with production halts and falling oil prices. For the first time in the oil business history, oil prices in U.S. fell below zero.
For example, in May 2020, dealers were bribing customers to buy oil in U.S., causing the oil market to become unbalanced and consequently hurting market growth. Many oil and gas projects are projected to be delayed due to lockdown and social distancing standards, from complicated deep-sea projects that rely on global personnel and material to processing facility expansion and pipe-laying.
By type, the floating production storage & offloading market is segmented into refurbished and new-build.
The refurbished segment holds the lion's share.
The refurbished category is expected to take the largest proportion of the market. Refurbished FPSOs are floating production, storage and offloading vessels created by altering an existing transportation vessel, often a crude oil shuttle tanker. Converting a tanker to an FPSO takes a few months. A new-build FPSO, on the other hand, takes several years to construct. As a result, the market for refurbished floating production storage and offloading is expected to develop significantly.
Rising investments in North America
The offshore oil and natural gas business are critical to U.S. energy supply, economic growth and employment creation. The oil & natural gas industry supports jobs in various manufacturing & service businesses, including oil & natural gas machinery, air & sea transportation and legal & insurance services.
Increasing investments to support energy infrastructure growth and increased demand for offshore oil and gas production in countries like Mexico will propel the floating production storage and offloading market forward.
The global construction composites industry has many manufacturers. Major global floating production storage & offloading market companies include Bumi Armada, SBM Offshore, Bluewater Energy Services, Teekay, Shell, ExxonMobil, Petrobras, Chevron, BW Offshore and MODEC.
Overview: The company was established as a public limited company in December 1995. The Bumi Armada group of companies consists of various subsidiaries and joint ventures. It is a Malaysia-based offshore energy facilities and services company with operations in 29 countries spanning four continents: Asia, Europe, Africa and Latin America. Our worldwide team's unique culture empowers diverse solutions to securely deliver its marine assets - FPSO, LNG FSU, OSV and derrick lay-barge - owing to over 800 professionals from over 27 nationalities.
Product Portfolio: Life of field surveys, drilling support, production facilities, installation & operations, pipe-laying, hook-up & commissioning and vessel chartering are offered by the company. The FPO division specializes in the engineering, procurement, building, commissioning and operation of floating oil & gas facilities according to clients' needs. Bumi Armada currently runs the following facilities: four owned FPSOs, three jointly owned FPSOs, one LNG Floating Storage Unit ("FSU") and one partially owned FPSO in the works.
Key Development: In 2019, Bumi Armada Berhad stated that its wholly-owned subsidiary Armada Oyo Limited ("AOL") had reached a deal with Century Energy Services Limited ("CESL") to sell the Armada Perdana FPSO for US$40 million. CESL intends to repurpose the vessel and send it to another field in Nigeria.
Visualize the composition of the floating production storage & offloading market segmentation by propulsion, hull type, usage, type and region, highlighting the critical assets and players.
Identify commercial opportunities in the floating production storage & offloading market by analyzing trends and co-development deals.
Excel data sheet with thousands of floating production storage & offloading market-level 4/5 segmentation points.
Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the key product of all major market players
The global floating production storage & offloading market report would provide access to an approx. 69 market data table, 59 figures and 209 pages.
Target Audience 2022
Floating Production Storage & Offloading Service Providers/ Buyers
Industry Investors/Investment Bankers
Education & Research Institutes
Floating Production Storage & Offloading Manufacturers
LIST NOT EXHAUSTIVE