A total of 20 contracts for floating production storage and offloading (FPSO) units are expected to be awarded in 2021 and 2022, creating a very healthy project line-up for contractors, a new report from energy intelligence firm Rystad suggests.
In addition to the six FPSO contracts in 2021, Rystad believes another four will be awarded before the end of the year – more than triple the three awards from 2020.
The four FPSO contracts expected to be awarded before the end of the year include Mero 4 and Parque das Baleias in Brazil, Limbayong in Malaysia, and Liuhua 11-1 in China.
Another 10 projects are likely to be awarded in 2022. Most of the FPSO awards come from Latin America, with four units bound for Brazil and one for Guyana. Angola and the UK are likely to see two awards each, and one is lined up for Australia.
“After a weak 2020, the recent awards and the expected ones are doubling the pipeline, ensuring manufacturers will keep busy in the years ahead,” said Aleksander Erstad, energy service research analyst at Rystad Energy.
Petrobras is currently evaluating bids for the two Brazilian FPSOs, Mero 4 and Parque das Baleias. In Malaysia, Petronas is evaluating bids for the Limbayong FPSO, with a contract award expected to be handed out before the end of the year.
China’s CNOOC is looking for a cylindrical FPSO to redevelop the Liuhua 11-1 and Liuhua 1-4 fields in the South China Sea. The FPSO will be built in China and is likely to involve COOEC, Cosco and CIMC Raffles.