Global Floating Production Storage and Offloading Market - 2024 - 2031

Report Overview

The Global Floating Production Storage and Offloading Market size was worth US$ 25.20 million in 2023 and is estimated to reach US$ 38.99 million by 2031, growing at a CAGR of 5.61% during the forecast period (2024-2031).

Offshore oil and gas fields use floating production storage and offloading (FPSO) vessels to collect hydrocarbons from subsea oil reservoirs and transform them into oil, gas and water. The ships hold processed crude oil or natural gas until offloaded onto a shuttle tanker or transferred to refineries via an export pipeline.

Pumps, generators, storage tanks, control rooms and lodging facilities are available to assist in extracting and refining oil and gas in remote places at affordable costs. FPSO boats are more flexible, versatile, safe and time-efficient to offer a large storage capacity than conventional offshore oil & gas facilities. When a current oilfield is depleted, FPSO vessels can be transferred to a new place without the need for costly underwater oil pipelines.

As a result, it is gaining traction in frontier areas where local pipeline infrastructure is lacking and smaller oil and gas fields have become dry for years. They are also appropriate for adverse weather situations since they have detachable turret systems that can be withdrawn during an emergency and reattached to continue operations.

Market Dynamics

The market is expected to develop due to rising demand for offshore exploration and production activities and the exploitation of marginal oil reserves. However, hefty installation costs may stifle expansion during the forecast period.

The rising focus on offshore exploration and production activities

Because of the increased focus on offshore exploration and production activities and increased exploration in deep and ultra-deepwater, the FPSO market is predicted to grow rapidly. As per the International Energy Agency (IEA), annual capital investment in offshore oil and gas production is expected to increase dramatically, boosting industry growth. Furthermore, FPSOs are supported by the exhaustion of onshore oil sources.

The growing demand for integrated compact integrated systems in deep and ultra-deepwater offshore reserves to combat harsh circumstances will boost FPSO market growth in six years. Due to cost-effective and efficient production processes with high yield potential.

The rise in exploitation activities of marginal oil reserves

Increased exploitation of marginal oil deposits in remote offshore areas, along with the ability of FPSOs to work without the help of a fixed structure, are expected to have a favorable impact on market development. For example, an oil field was discovered in Australia's North Western Shelf in 2018. Furthermore, the market is predicted to develop due to the capacity of such units to survive adverse weather conditions.

Other reasons that have aided the growth of the floating production storage and offloading business include marginal fields and difficult conditions. Over the next few years, new E&P activities in offshore shale fields are likely to boost FPSO requirements.

High installation costs

Operational costs were calculated using general operating expenses for facilities and extrapolated for unknown facilities using benchmarks based on facility type, size, production and age. While conceptually simple, an oilfield's risers and flowlines are some of the most crucial components, requiring a high level of technical sophistication and, as a result, a significant capital cost.

Market Segment Analysis

By type, the floating production storage & offloading market is segmented into converted and new-build.

The converted segment holds the lion's share

The converted category is expected to take the largest proportion of the market. Converted FPSOs are floating production, storage and offloading vessels created by altering an existing transportation vessel, often a crude oil shuttle tanker. Converting a tanker to an FPSO takes a few months. A new-build FPSO, on the other hand, takes several years to construct. As a result, the market for converted floating production storage and offloading is expected to develop significantly.

Market Geographical Analysis

Rising investments in North America

The offshore oil and natural gas business are critical to U.S. energy supply, economic growth and employment creation. The oil & natural gas industry supports jobs in various manufacturing & service businesses, including oil & natural gas machinery, air & sea transportation and legal & insurance services.

Increasing investments to support energy infrastructure growth and increased demand for offshore oil and gas production in countries like Mexico will propel the floating production storage and offloading market forward.

Market Competitive Landscape

Major players in the market include Bumi Armada, SBM Offshore, Bluewater Energy Services, Teekay, Shell, ExxonMobil, Petrobras, Chevron, BW Offshore and MODEC.

COVID-19 Impact Analysis

The pandemic produced significant disruptions in global supply chains, delaying the delivery of critical equipment and materials required for FPSO installation and maintenance. It caused the postponement of ongoing projects and the delay in the commissioning of new FPSOs. Restrictions on transportation and the requirement for social separation hindered the availability of trained labor and technical professionals on-site, further delayed project deadlines.

Many offshore personnel were subjected to quarantine restrictions, affecting operations and maintenance schedules. Due to economic uncertainties and financial strains created by the epidemic, some corporations canceled or postponed planned FPSO projects. It was especially noticeable in initiatives that were in the early stages of development or had considerable financial risks.

Russia-Ukraine War Impact

The conflict between Russia and Ukraine has significantly affected the Floating Production Storage and Offloading (FPSO) industry, primarily due to disruptions in the supply chain and shifts in energy markets. The conflict has prompted a reevaluation of energy security, prompting several nations to explore alternative energy sources and reduce the reliance on Russian oil & gas.

The industry's transformation has led to an increased need for FPSO units as operators strive to tap into fresh offshore territories to compensate for reduced production and meet energy demands. In addition, the current geopolitical situation and the implementation of sanctions have affected the procurement of necessary materials and components for the construction and maintenance of FPSOs.

Companies are facing delays and expense escalations due to supply chain disruptions and increased regional risk. The challenges mentioned have led to a more cautious investment approach in the FPSO industry, with a focus on minimizing risks and ensuring operational stability amidst ongoing conflicts.

By Propulsion

Self-Propelled

Towed

By Hull Type

Single Hull

Double Hull

By Type

New Built

Converted

By Usage

Shallow Water

Deep Water

Ultra-deep Water

By Region

North America

U.S.

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In January 2024, Offshore Frontier Solution Pte Ltd in Singapore, a joint venture between MODEC and Toyo Engineering Corporation, selected ABB to supply a comprehensive electrical system and digital solutions for an ExxonMobil floating production storage and offloading (FPSO) vessel that will be deployed in the South American Uaru oil field. Errea Wittu, the offshore FPSO, will be stationed around 200 kilometers off the coast of Guyana.

MODEC, Inc. has revealed plans to open a new office in Kuala Lumpur, Malaysia in May 2024. This expansion, led by Offshore Frontier Solutions Pte. Ltd., is dedicated to supporting Engineering, Procurement, Construction and Installation (EPCI) projects for floating offshore solutions. The initiative aims to generate more than 200 new job opportunities in engineering and other corporate support functions, intending to fill them by early 2025.

Why Purchase the Report?

Visualize the composition of the floating production storage & offloading market segmentation by propulsion, hull type, usage, type and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the floating production storage & offloading market by analyzing trends and co-development deals.

Excel data sheet with thousands of floating production storage & offloading market-level 4/5 segmentation points.

Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global floating production storage & offloading market report would provide access to an approx. 69 market data tables, 59 figures and 209 pages.

Target Audience 2024

Floating Production Storage & Offloading Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Floating Production Storage & Offloading Manufacturers