Production

Floating production growth raises optimism and concerns

Oct. 21, 2019

The floating production market is burgeoning once again, with the number of FPSO contracts expected this year set to exceed 2018, and then continue an upward growth trajectory through 2020. This influx of work for the FPSO contractors and related services sector is encouraging for the industry. But it raises concerns about a depleted sector’s ability to secure the necessary financing for the major projects; to rebuild the workforce to handle the inbound orders; and to mitigate the potential for delays and cost-overruns. Fortunately, lessons from the downturn have led to many improvements in project design and development, as well as with contracting arrangements between operators and contractors. One of the many beneficiaries is Guyana’s first offshore oilfield development, Liza.

The Liza Phase 1 deepwater development in the Stabroek block is on track to start production by early next year. Plans for full field development call for at least five FPSOs. Jeremy Beckman, Offshore Editor-Europe, says this development could have a transformational impact on Guyana’s economy, as well as serve as a benchmark for the industry, due the cooperation between the operator and its partners and the principal contractors. Most of the same players are involved in the Liza Phase 2 development, and the technical and organizational solutions could be adapted for subsequent phases. Jeremy’s full story begins on page 29.

Elsewhere, the FPSO-based Mero phase development offshore Brazil is employing some unique technologies, including a standardization program for the Phase 2 FPSO. The project consortium completed an extended well test on the field with FPSO Pioneiro de Libra in October 2018. The FPSO was equipped for gas reinjection to control flaring and carbon dioxide emissions, while maximizing reservoir productivity. The consortium suggests that the gas reinjection was one of five new technologies deployed for the test program.

Jessica Stump, Offshore Assistant Editor, details the full field development and project timeline, beginning on page 37.

About the Author

David Paganie | Energy Conference Director

After 20 years with Offshore, David Paganie has transitioned into a new role within Endeavor Business Media as Energy Conference Director, effective Jan. 1, 2025.

He is still leading the event content, chairing the conference advisory boards and working with the conference teams for Offshore's events (Subsea Tieback and Deepwater/Topsides) as well as Microgrid Knowledge's events. His success in growing event content and securing senior level executives as speakers has led to him creating many of the best practices at Endeavor.

Paganie previously served as Chief Editor of Offshore magazine and Conferences Editorial Director. He oversaw the Offshore portfolio of print and digital editorial content and international oil and gas conferences. He also wrote the monthly Comment column for Offshore.

He previously served as Editor of Offshore Field Development International at ODS-Petrodata; and as an Analyst at Baker Energy. He holds a Bachelor of Business Administration degree with a specialty in finance from Ohio University.