FPSO sector poised for up to 50 contract awards this decade

New awards in the floating production storage and offloading vessel market could reach up to 50 by the end of this decade, according to a new report by Rystad Energy.

From 2023 to 2030, the Oslo-based market intelligence firm forecasted 48 FPSO deals for new greenfield developments, 19 of which are earmarked for Brazil and Guyana, with 12 and six units, respectively.

Europe is expected to see nine units in total, with new countries added to the list such as Cyprus and Ireland. In Africa, Angola and Nigeria will see three and two units respectively, while the recent exploration success in Namibia is expected to lead to two new FPSOs, Rystad Energy said. 

Eight FPSOs were awarded in 2022, with another 12 awards expected this year.

Aside from greenfield projects, the brownfield market is expected to see dozens of life-cycle extension projects and redeployments. Decarbonisation of the FPSO sector is also expected as the growing demand would hike the CO2 emissions from 38m tonnes in 2023 to nearly 50m tonnes by 2030 unless steps are taken, Rystad Energy noted.

Increased offshore sanctioning will also bolster drilling activity, with offshore rig demand for floaters rising 10% and jackup demand 9% in 2023. Subsea activity is expected to support offshore vessel demand, which is set to rebound to 95% of the average demand seen during the 2010–2014 period.

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