LONDON – The world floating production systems (FPS) market will be one of the strongest offshore sectors going forward to 2016, says Infield Systems. In its just-released “Floating Production Systems Market Report To 2016, Infield sees increasing investment in FPS installations being made away from the traditional areas of Latin America and West Africa.
Since 2000, the trend for floating platform installations in water depths of 500 m (1,640 ft.) or more has been driven primarily by Latin America. The region has consistently held a 35% market share of capex at this depth, and is expected to maintain this throughout the forecast period.
Going forwards, the ultra-deepwater market, where water depths are of 1,500 m (4,921 ft.) and more, is expected to dominate FPS demand, with installations over these depths holding a 31% share of floating platform capex over the 2012-2016 timeframe. This compares to 22% over the historical 2007-2011 period. Of these ultra-deepwater developments, Latin America continues to hold the dominant share at 58% of capex spend, with key FPS projects offshore Brazil.
However, as a result of major growth from previously more marginal areas of floating production development, in particular Australasia, the proportion of total global capital expenditure across all water depths attributable to Latin American developments is expected to decrease from 30% across the historical period to 27% going forwards to 2016. Indeed, during the forecast period, the Australasian region is expected to witness its market share of capex increase by 10% over the prior period, 2007-2011; the largest regional increase across the globe.