The persistent fall in crude oil prices is set to affect investments in offshore projects resulting in delays in the start of planned floating production, storage and offloading units (FPSOs), says a GlobalData report.
Titled ‘Q2 2016 Global FPSO Industry Outlook – Brazil Continues to Drive Global FPSO Growth’, the report states that an estimated 58 FPSOs are expected to start operations in the next four years. South America will lead in the number of planned FPSO additions with 19 followed by Africa (13) and Europe (11).
The global FPSO market will continue to be dominated by Brazil with a planned deployment of 18 FPSOs by 2020. The other top contenders in terms of planned FPSO deployment will be UK (eight), Angola (six) and Nigeria (five). Nigeria has added one FPSO deployment in the Q2.
With 19 planned FPSOs, Petroleo Brasileiro will lead the FPSO industry in South America and worldwide. The other key FPSO operators globally will be Chevron, Royal Dutch Shell, Bumi Armada Offshore Holdings, and Teekay Offshore Partners with five, four, four and three planned FPSOs, respectively, by 2020.
The GlobalData report further states that the main destinations of FPSOs in Europe will be the North Sea and the Barents Sea. Asia is expected to deploy eight FPSOs by 2020, one higher than that in the last quarter, while North America is expected to start operations of three FPSOs. Two FPSOs each are planned to be operational in the Middle East and Oceania by 2020.