May 04, 2020
As per the report titled ‘FPSO Market Size By Product, By Water Depth, Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2019-2025’, available with Market Study Report LLC, global FPSO market is estimated to accrue USD 30 billion by the year 2025.
Ongoing offshore exploration & production activities owing to rising concerns over depleting onshore oil & gas reserves is driving the growth of global FPSO market. Development challenges associated with fixed infrastructure such as site accessibility, high costs, decommissioning issues, and environmental conditions are favoring the deployment of floating production storage and offloading (FPSO) vessels as a viable alternative. Furthermore, rising inclination towards fast-track floating solutions and technological advancements in subsea technologies will foster the market growth in the coming years.
Growing focus towards the discovery and development of smaller oil reserves in remote offshore locations is positively impacting the market outlook. In January 2018, Chevron Corporation announced the discovery of an offshore ultra-deep-sea oil reserve at a water depth of about 1,900 meters in the U.S. Gulf of Mexico. Additionally, reusability of FPSO units at a different production site upon exhaustion of one, coupled with their ability to withstand adverse weather conditions is expected to bolster the product demand.
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As per the product landscape, new built segment is anticipated to record substantial growth during the forecast period, owing to increasing investments for the exploration and development of deep and ultra-deep-water reserves. Optimal design parameters, high flexibility, extended lifespan, and lower operational cost along with advanced safety features are major factors favoring the product adoption. Advancements such as double & cylindrical hull designs and separable turret system will further attract investments, thereby enhancing the segment growth.
On the other hand, converted segment witnessed an yearly deployment of 7 units in 2018 and is anticipated to show modest growth in the forthcoming years. Redeployment and refurbishment of numerous retired VLCC and ULCC vessels will positively impact the segment growth. Lower capex and shorter development schedule are the major benefits favoring the deployment of converted FPSO vessels.
Based on the water depth, ultra-deep segment is reckoned to observe significant gains throughout the projection period. Development of and production from ultra-deep offshore reserves using advancing drilling & seismic technologies in tandem with proven abundance of deep-water reserves is driving the segment growth. As per the EIA, oil production from ultra-deep waters grew by 25% in a decade, with 9.3 million bpd extracted in 2015 from 7 million bpd in 2005.
Considering the regional analysis, Latin America FPSO market is poised to grow considerably through 2025, on account of positive growth of state-owned companies along with recent discovery of huge pre salt oil reserves in the region.
Major players operating in FPSO market include Technip, SBM Offshore, KBR, Samsung Heavy Industries, Saipem, DSME, Petrobras, Hyundai Heavy Industries, MODEC, CNOOC, Woodside Petroleum, BW Offshore, and Bumi Armada.