Reportedly, South America heads the group with 12 approved FPSO (floating production storage and offloading) projects proposed by 2020, followed by Asia (4), Europe (3), Africa (3), and Australia (2) as stated by Rystad Energy. Brazil, which is at present witnessing an invasion of international E&P (exploration & production) companies, is prepared to award additional seven FPSO awards in 2020, thus bringing the country’s count to over one-third of the grants expected globally in 2019 and 2020. In this year, already seven projects have been confirmed that jointly represent production abilities of more than 700,000 bpd (barrels per day) of oil and almost 60 million cubic meter per day of gas.
Audun Martinsen—Chief of Oilfield Services Research from Rystad Energy—said, “The current upswing in newly approved FPSO projects directs to a brighter prospect for the FPSO market. The foreign operators are seeking for their expansion following the downturn of 2014, as a strong rise in free cash flow has boosted a noteworthy uptick in deepwater investments.” The FPSO boom across South America is chiefly the outcome of large investments in field development and deepwater exploration. Another major aspect has been Brazil’s recent relaxation of regional content regulations, which has lured new global players to the table.
Speaking of the FPSO market, lately, growth propped for BW Offshore’s African plan. The international provider of FPSO, BW Offshore, in recent time confirmed a 1-Year extension for the operation and lease of the Petroleo Nautipa on the Etame offshore field for US-based VAALCO Energy. Reportedly, BW Offshore owns a convoy of 15 FPSO units and stated that the firm period for the Petroleo Nautipa has been prolonged to the third quarter of 2021, though there is a stipulation in the contract with alternatives to increase the extension more to the third quarter of 2022.