The pause in large Floating Production orders continued in Q1 2024 as companies adjusted to new pricing realities and the supply chain worked through the backlog of orders placed in 2021-2022. The only large order so far in 2024 was for the Cedar LNG in Canada, which will be the first FLNG in North America: $1.5 billion for Samsung and $800 million for Black & Veach. In March 2024, Karmol placed an order with Seatrium for three FSRU conversions, with an option for a fourth unit.
There had been a similar slowdown in offshore drilling contracting in late 2023, but activity has resumed with recent awards for deepwater rigs now eclipsing $500,000/day. We therefore still expect significant orders for floating production units later in the year, including multiple FPSOs for Petrobras in Brazil, new frontier regions in South America, and mature areas in West Africa like Angola and the Ivory Coast. EMA’s latest edition of the Floating Production Systems Report includes details of these projected awards as well as:
- 184 Projects in planning pipeline
- 51 Production floaters and 6 storage floaters currently on order
- 24 Units currently available (14 FPSOs, 4 Semis, 2 FSOs, 2 FSRUs, 1 Barge, and 1 SPAR).
- 339 production floaters and 114 storage floaters currently in service/ available
- 410 production floaters, 190 storage floaters, and 24 MOPUs delivered or redeployed since 1996
According to EMA’s Managing Director, David Boggs "while there has been a slowdown in orders over the past 12 months, the fundamentals of the floating production sector remain strong. There is a long queue of developments progressing toward sanction. Cost escalation and limited contracting capacity have contributed to delays in reaching FID. There was a similar pause in the deepwater drilling market in 2H 2023, which seems to be over with rates reaching new highs. We expect multiple awards of large floating production units, including massive FPSOs for Petrobras, in the next few months.”
About EMA
Energy Market Analysis (EMA), part of the Archer Knight Group, is recognized the foremost independent authority in delivering data and consultancy advice on the floating production market. With a dedication to driving excellence and fostering innovation, EMA empowers stakeholders across the energy sector to make strategic, data-driven decisions.
For further information, please contact: Yun Xu (Asia time zones)
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