Douglas-Westwood: $99 B will be spent on floating production units by 2014

Douglas-Westwood’s NEW World Floating Production Market Report forecasts that between 2014 and 2018 $99 billion will be spent on floating production systems – an increase of 138% over the preceding five-year period.

Image source: Bumi Armada

Report author, Damilola Odufuwa, commented, “FPSOs will form the largest segment of the market (80%) both in terms of units installed and forecast capital expenditure over the 2014-2018 period. Latin America accounts for 29% of the 139 installations forecast and 38% of the projected Capex.

“The FPS sector recovery following the 2008/2009 downturn continues steadily. A total of 54 units were ordered in 2011-2013 compared to 23 units during 2008-2009. There has been little growth in the annual value of installed units over the last four years; however, 2014 is expected to show a significant increase in the value of units deployed.

“The strong forecast growth is despite the industry still coming to terms with a number of demand-side and supply-side issues. The failure of Brazilian operator OGX in 2013 and the slow-down in overall upstream expenditure in 2014 will impact the market in the near-term. Likewise, the industry’s record in terms of project execution has been poor, with most projects delivered late and significantly over-budget. Some industry players are now suggesting a new approach is required.

“However, the long-term growth in the sector is underpinned by the continued exploitation of deep waters, marginal fields and fast-track/short term deployments. Deepwater FPS deployments are expected to total $68bn and account for over two-thirds of the total spend.”

Press Release, February 19, 2014

Share this article

Follow Offshore Energy Today

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Africa Oil & Power 2019

The Africa Oil & Power conference will bring together an elite class of ministers and senior-level government…

read more >

OWI LATAM 2019

Over the two-day conference, 25+ expert speakers will share exclusive insight on how to develop an integrity, production and P&A strategy…

read more >

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

read more >

Argentina Oil and Gas Expo 2019

The Argentine Oil and Gas Institute (IAPG) organizes the Argentina Oil & Gas Expo bringing together the most…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply