Offshore staff
LONDON –Douglas-Westwood’s new "World Floating Production Market Forecast 2015-2019" projects that $81 billion will be spent between 2015 and 2019 on FPS units – an increase of 73% compared to 2010-2014.
The value of annual installations is projected to grow from nearly $12 billion in 2015 to $21 billion in 2017 before declining to $17 billion in 2019, says the report. Projects already ordered will account for much of this spend.
FPSOs represent the largest segment of the market both in numbers (87 installations) and forecast capex (81%) during 2015-2019. TLPs account for the second largest segment of capex (9%) with FPSSs third (7%).
Latin America will see nearly one-third of the 110 installations forecast and 32% of the projected capex. Asia accounts for nearly a quarter of forecast installations, but only 13% of spend. Africa will see 22% of the projected capex. Western Europe is expected to form 15% of forecast spend. Deepwater expenditure will make up 68% of the global FPS market.
Financing remains a challenge for leasing contractors and smaller E&P companies as a result of the lower oil prices. Local content requirements are also pushing up prices and extending lead times, particularly in Brazil.
02/25/2015
