World Floating Production Market Forecast 2016-2020

World Floating Production Market Forecast 2016-2020
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World Floating Production Market Report 2016-2020 forecasts that Capex for FPS units will total $58 billion (bn) over the period to 2020. This is substantially lower than expected last year, as result of plummeting oil prices over the second half of the year, but the value of the order book remains near record levels. There remains a wave of projects, ordered over the previous cycle, that are yet to be installed. Many of these have seen installation dates slip, with delivery on time (and budget) clearly still an issue for the industry. The looming challenge for the supply chain, and particularly shipyards, is the lack of new orders to refill the backlog after these units come onstream.

2015 was a weak year for orders in the FPS industry with only four vessel contracts being awarded with a total value of $3bn. There have been no orders to date in 2016. It appears we have reached the bottom of the down cycle and operators are adjusting to the low oil price and will begin to order again in the second half of the year. Expects a low order value of $2.6bn this year, from a higher number of orders than in 2015. Operators are pushing both cost reduction measures and complete re-engineering of projects. Two key examples are the FPSS for the Mad Dog Phase 2 project (which should be ordered this year) and the Johan Castberg FPSO. Both fields had development plans that were uneconomic when the oil price was $110 but due to cost decreases and revised development plans are now economic at a low price – showing that operators are willing to adjust and work at the new price norm.

There was limited commissioning in 2015 and as a result the value of units under construction declined only $3bn, from $54bn to $51bn in the last year. In 2016 we have already seen the start-up of high-Capex vessels such as the Goliat FPSO in Norway, while vessels such as Turritella for the Stones field in North America and the FPSS and FPSO for the Ichthys field in Australia are due to start in the coming years.

The current downturn represents an opportunity for the industry to move towards a more standardised approach to FPS engineering, which has been debated for many years, without significant progress. We expect a leaner, more efficient FPS industry to emerge from this downturn.


The World Floating Production Market Forecast is now in its 14th edition and is supported by analysis, insight and industry consultation and includes:
  • Drivers & indicators – a review of factors influencing the floating production market including global energy demand; continued development of offshore reserves; oil & gas prices; supply & demand; Brazilian activity; and the role of deepwater.
  • Operator analysis – Capex for the leading FPS operators, historic, forecast and by region and water depth.
  • 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 and a review of prospective vessel redeployments.
  • Regional analysis – with trend commentary for Africa, Asia, Australasia, Latin America, Middle East, North America and Western Europe.
  • Floating production prospects – list of floating production systems due onstream over 2016-2020, including the following data: country, E&P operator, field, FPS name, prospective year, status of FPS, FPS type and moored water depth.

Reasons to Buy

Trusted by sector players worldwide, with clients including the world’s top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms.

The report is essential 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.

  • Unique and proprietary data – updated year-round from published sources and insight gained from industry consultation.
  • Detailed methodology – analysis is based on Oil & Gas database which details more than 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.
  • Comprehensive analysis – comprehensive examination, analysis and 10-year coverage of floating production capital expenditure.
  • Concise report layout – consistent 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.

Date Published

July, 2016

Format / Pages