Oil price puts brake on FPSO activity

Offshore staff

FAVERSHAM, UK – Douglas-Westwood (DW) says the lower oil price has impacted investments in FPSOs.

So far this year only three contracts have been awarded, with a total value of around $1.5 billion.

One is a conversion for the Sankofa-Gye Nyame development offshore Ghana; the others are a small conversion job in Iran and an upgrade in Indonesia.

During the first half of last year, twice as many orders were placed with a combined value 528% higher, led by the conversion of two FPSOs for the Kaombo project off Angola.

DW says the current situation reinforces the view that operators are more focused on bringing down costs down and waiting for a recovery in oil prices before commissioning major new projects.

The analyst forecasts four more awards later this year, with potentially five more if the oil price rebounds.

Longer-term FPSOs will remain vital for development of oil and gas fields in deeper waters as well as for marginal fields in mature regions, DW points out, and it maintains that during 2015-19, floaters with a total value of $60 billion will be installed, with more than 130 potential future deployments.

06/22/2015

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...