The global floating production market has stirred back to life, according to analyst Rystad Energy. Last year brought some relief to the market, with six new FPSO orders worldwide. With oil prices recovering to around $80/bbl this year, combined with technological advancements and reduced costs, momentum has picked up further.
More than 30 FPSO projects could reach FID between 2019 and 2021. The cost-cutting efforts of the downturn are a major contributor to the projects’ favorable economics. Fourteen projects have a breakeven of less than $50/bbl, 15 projects come in between $50 and $70/bbl. Just three of the expected projects have breakevens more than $70/bbl. The analyst added that FPSO awards are set for a strong comeback driven by Brazil.
