Worldwide FPSO market is anticipated to exceed US $30 billion by the year 2025, according to the latest research available at Market Study Report LLC, report provides complete overview of fpso Market considering all the major Industry trends, market dynamics and competitive scenario.
As the onshore oil & gas reserves are depleting, the industry is adopting offshore exploration & production activities. FPSO deployment can counter various challenges related to fixed infrastructure such as excessive costs, environmental regulations, site accessibility, and decommissioning which will foster the growth of FPSO market. Other factors fueling market growth include improvement in subsea technologies and growing adoption of fast-track floating solutions, cites the report.
FPSO has the potential of redeployment at a different location on exhaustion of resource at one and can withstand adverse weather conditions, thereby driving the product demand. According to the report, the key players of the energy and oil industry are focusing on discovering and developing offshore reserves located remotely. For instance, Chevron Corporation in January 2018 announced the discovery of an ultra-deep oil reserve in the Gulf of Mexico at a depth of 1900 meters.
Based on the product type, the converted FPSO market registered a deployment of 7 units in the year 2018, pertaining to the ability of retired ULCC and VLCC vessels to be refurbished & redeployed. Conversion of such containers into FPSO vessels requires less capex and shorter development time, encouraging the key contenders of the market to adopt converted FPSO. Another factor driving the deployment of such vessels is the international maritime regulations.
The new-built FPSO market is presumed to register significant growth over the forecast period owing to the increasing investments in the development of deep and ultra-deep reserves. The product will be in high demand on account of various features such as lower operating cost, field life extension flexibility, design, and advance safety parameters. Though advancements such as double hull design, cylindrical hull design, and separate turret system in offshore technologies will attract investments, but the higher capex and longer development schedule will hamper the deployment of new-built FPSO vessels.
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As cited in the study, evolution of seismic and drilling technologies for the development and extraction from ultra-deep offshore reserves along with the proven presence of numerous deep-water reserves will propel the growth of ultra-deep FPSO market in the upcoming years. Oil production from ultra-deep reserves has increased by 25% over the past decade, reported EIA.
In terms of regional landscape, Latin America is anticipated to lead the global FPSO market over the forecast period owing to the discovery of pre salt oil reserves and government initiatives to support such activities. The recent content regulation introduced by Brazil indicates easier and lesser requisites and reduced fines for E&P contracts, thereby bolstering the FPSO market growth in the country. Additionally, Petrobras reportedly estimated 6 billion barrels reserves of pre salt oils in Campos & Santos basins located offshore in Brazil.
The key players of the FPSO market include Technip, CNOOC, Hyundai Heavy Industries, SBM Offshore, Samsung Heavy Industries, KBR, Woodside Petroleum, Bumi Armada, Saipem, DSME, Petrobras, BW Offshore, and MODEC among others.