A report from U.S.-based Zion Market Research forecasts global FPSO market growth between 2015 and 2021 as oil and gas E&P expands in deepwater, ultradeepwater and offshore fields.
“Increasing consumption of oil [and] gas globally, particularly in power generation and transportation sectors has made companies explore more hydrocarbon reserves,” the company said in a release announcing the release of “FPSO Market: Global Industry Perspective, Comprehensive Analysis and Forecast, 2015-2021.”
Zion ties the growth to the highly technical and expensive nature of fixed processing and production facilities in remote production areas. The report also cites factors such as Marginal fields and challenging environments that are driving FPSO expansion.
While Zion noted that the market is dominated by converted FPSO systems, the demand for newbuild FPSO systems has decreased as prices for oil and gas have fallen during this downcycle.
Zion expects North America and Europe to experience considerable growth in this segment as a result of their mature oil and gas reserves.
“South America and East Africa also are expected to experience significant growth due to recent offshore E&P developments and deepwater oil field discoveries,” the company said. “Further, Brazil is expected to emerge as a major FPSO market in this region due to rising oil and gas activities along with considerable government support. Recent deep sea oil and gas reserves in South China Sea, North Sea and the Gulf of Mexico are expected to positively impact the global market growth in the near future.”
Among the companies dominating the global FPSO market, Zion listed Bumi Armada Berhad, MODEC Inc., BW Offshore, Bluewater Energy Services B.V., COSCO Shipyard Group Co. Ltd., Yinson Holdings Berhad. Sembcorp Marine Ltd., Hyundai Heavy Industries Co. Ltd., Teekay Corp. and SBM Offshore N.V.
—Joseph Markman
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