A new review of the FPSO (including FLNG) market has just been published from Clarksons Research, which contains some bullish figures on likely new orders filtering into the sector.
Steve Gordon, managing director of Clarksons Research, commented, “FPSO award potential is increasing although risks and challenges remain. Following a 30-year low in 2016, awards for newbuild and conversions increased to $6.5bn in 2017 and there is order potential for a further $25bn through 2020.”
The year 2016 was the first time in 31 years where there were no FPSO newbuild or conversions awards.
Following $1.5bn of awards in the first half 2018, there is, according to Clarkson Research, order potential for a further 33 units worth some $25bn through to 2020. Order potential includes FPSO (76% in numerical terms, 56% by value) and FLNG (24% in numbers and 44% by value). Order potential focuses on Brazil, West Africa, North America and the Asia Pacific
Additional award potential exists for other types of MOPU, including five semi-subs and 6 jack-up production units through 2020.
Clarksons data shows the global FPSO (including FLNG) fleet had increased to 211 units by mid-2018, up from 113 in 2008. The construction backlog of newbuilds and conversions at yards and fabricators totals 22 units globally.