Market Trends of Floating Production Systems (FPS) Industry
This section covers the major market trends shaping the Floating Production Systems market according to our research experts:
Floating Production, Storage, and Offloading (FPSO) to Dominate the Market
- FPSOs are the most popular floating production systems due to their additional feature of storing and offloading produced crude oil. Thus, FPSOs account for over 60% of the market share, which is expected to increase further over the forecast period.
- FPSOs help in long-distance movements, providing the operator a chance to use them over different regions and fields over their lifetime.
- Brazil deployed the maximum number of FPSOs, and it is expected to continue to do so during the forecast period. As of July 2021, 41 FPSOs were operating in the country, with an additional 11 on order.
- The increasing energy demand is expected to drive the floating production systems market during the coming decade, as the new exploration activity is at an all-time high. The operators are also often forced to work in much deeper waters that require sophisticated technology and equipment. They also require the capability of storage and offloading oil.
- Such factors are expected to drive the market for FPSOs over the forecast period.
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South America to Dominate the Market's Growth
- The South American region is expected to boost the overall FPS market significantly. Brazil and Guyana are the most significant countries in the market, as the demand for FPS has substantially increased in these countries in recent years.
- The offshore oil and gas industry is expected to witness massive investments during the forecast period. In 2020, Rio De Janeiro was the highest crude oil producer in Brazil, as almost all the producing fields were located offshore. The state recorded the production of around 853 million barrels. In 2021, seven out of 10 FPSO contracted projects were from Brazil, with three additional projects to be added to the portfolio in 2022.
- In October 2022, Sembcorp Marine won a USD 3 billion contract for a new FPSO for Petrobras. The FPSO P-82 will be deployed at the Buzios offshore oil field in Brazil's pre-salt Santos Basin.
- In November 2021, SBM Offshore bagged a FEED contract for the deployment of an FPSO vessel for the Yellowtail Development Project in Guyana. The contract was awarded by Esso Exploration and Production Guyana Limited, the subsidiary of Exxon Mobil. The company plans to fabricate, install, and operate the unit for around two years from the commencement of production. With a production capacity of 250,000 barrels per day, the FPSO is likely to start production in 2025.
- Therefore, owing to such developments, the South American region is expected to hold a significant market share during the forecast period.
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