Rising Oil and Gas Exploration in Unconventional Locations to Drive Global FPSO Market to US$43.4 bn by 2021

A recent market research report published by Transparency Market Research gives a thorough analytical account of the present state of the global FPSO market and forecasts the future growth prospects of key market segments over the period between 2015 and 2021.The report, titled “FPSO Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2021,” states that the market will expand at an exponential CAGR of 16.2% between 2015 and 2021, and rise to a valuation of US$43.4 bn by 2021, from US$15.9 bn in 2014.

Floating, production, storage, and offloading (FPSO) vessels are used for extracting or receiving raw hydrocarbons from sea beds, which are then processed in onboard processing facilities. These vessels are a part of floating production systems and are also equipped with temporary onboard storage facilities. As the installation of fixed processing and production facilities in remote oil and gas production areas is technically complex and costly, the demand for FPSOs, which exclude the need for fixed processing facilities, has seen a significant rise in the past few years. The rise in demand corresponds to the global rise in oil and gas production activities from remote locations (deepwater and ultra-deepwater).

The report segments the global FPSO market on the basis of type, water depth, and geography.

On the basis of type, the market has been segmented into converted FPSO systems, new-build FPSO systems, and redeployed FPSO systems. Of these, the market is presently dominated by converted FPSO systems and the demand for new-build FPSO systems has come down as oil and gas exploration companies are keen on cutting costs post the historic steep decline in oil prices during 2014-2015.

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On the basis of water depth, the market has been segmented into shallow water, deepwater, and ultra-deepwater systems.

On the basis of geography, the global FPSO market has been segmented into Americas, Oceania, Asia, Europe, and Africa. Americas led the global FPSO market in 2015 and is also expected to continue its dominant stance over the report’s forecast period. Growth in the FPSO market in Americas can be attributed to the rising investments in exploration activities in countries such as Brazil and the development of several new oilfields in the region.

The market is also expected to witness robust growth in Africa owing to the rise in demand for FPSOs in countries such as Ghana, Guinea, Nigeria, and Angola.

The report also presents a detailed overview of the competitive landscape of the global FPSO market wherein data pertaining to business profiles, revenues, finances, recent technological developments, and other key aspects of some of the major vendors in the market have been discussed in the report.

The most prominent vendors in the global FPSO market discussed in the report include Bumi Armada Berhad, BW Offshore, MODEC, Inc., Yinson Holdings Berhad, Bluewater Energy Services B.V., Teekay Corporation, Hyundai Heavy Industries Co., Ltd., and SBM Offshore N.V.

The market has been segmented into:

Global FPSO Market: By Type

• Converted
• New-build
• Redeployed

Global FPSO Market: By Water Depth

• Shallow water
• Deepwater
• Ultra-deepwater

Ability to be Renovated, Modified, And Re-deployed at Reduced Rates to Improve Scope of FPSO Vessels

The rise in the demand for floating, production, storage, and offloading (FPSO) vessels is due to the growing investments in the offshore exploration of oil and gas in deepwater and ultra-deepwater. Exploration projects especially in Brazil and Africa are expected to create a greater demand for FPSO. The depletion of existing oil and gas fields is leading to increasing concerns regarding the exploration of new reserves in a bid to meet energy demands. Owing to this, oil and gas exploration companies are pushing the exploration from onshore to offshore, which is in turn driving the FPSO market. Since FPSOs can sustain harsh working environments, their demand is increasing.

According to a report published by Transparency Market Research (TMR), the FPSO market is expected to rise from US$15.9 bn in 2014 to reach US$43.4 bn by 2021, expanding at a 16.2% CAGR from 2015 to 2021.

Q. What are the factors challenging the growth of the market?

The FPSO industry is capital intensive in nature and requires high initial investments. Huge financing is required for the construction of a new FPSO. The construction of a single unit costs US$2.5 to US$3.0 bn, whereas the cost of conversion of an oil tanker is between US$1.5 bn to US$2.0 bn. The cost of deployment, testing, and operation is also high. Furthermore, inflation is causing a rise in the cost of labor and materials, which in turn affects the return of investments (ROI) of FPSO operators.

FPSOs are prone to accidents and leakages, thus causing oil spills. This causes significant damage to the environment. As a result of the damage caused to the environment companies have to bear cost compensation, lowering their ROIs on offshore projects. Thus, increasing concerns regarding environmental pollution act as a major restraint impacting the growth of the global FPSO market.

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Q. What are the recent developments by key players operating in the global FPSO market?

In February 2015, Hyundai Heavy Industries Co., Ltd finished the construction of GoliatFPSO. The GolaitFPSO is the world’s largest cylindrical FPSO, capable of storing one million barrels of crude oil per day.

In October 2015, SBM Offshore got a front-end engineering and design contract from TechnipS. A. for three large-scale turret mooring systems. These systems need to be designed for implementation in projects for FLNG vessels in Australia. Such developments and contracts are expected to ensure that players continue to grow in the market.

Q. What are the key opportunities in the global FPSO market?

Key opportunities in the market are expected to lie in the conversion of oil tankers, refurbishments, and upgradations of FPSOs. The capability of an FPSO to be renovated, modified, and be re-deployed at reduced rates as compared to a newly built FPSO is expected to make it an attractive and cost-effective solution.

Additionally, it is expected that strategic collaborations among players in different stages of the value chain will prove to be beneficial and crucial for meeting the complex requirements of building advanced FPSOs.

The evolving subsea processing technology enables FPSOs to produce oil from challenging offshore oil reserves, which will ensure its continued demand in the future. Additionally, the rising focus on a standardized approach to FPSO engineering will lead to faster deployments, thus boosting its demand.

Global FPSO Market to be Driven by Rising Offshore Exploration Activities;to Exhibit 16.2%CAGR 2015-2021

The global floating, production, storage, and offloading (FPSO) market has been analyzed in a recent market research report published by Transparency Market Research. The report is titled “FPSO Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2021,” and is available on the company’s website for sale.The report states that the market will expand at an exponential 16.2% CAGR over the forecast period, rising to a valuation of US$43.39 bn by 2021 from US$15.86 bn in 2014.

FPSO refers to the floating vessels located near oil and gas exploration and processing platforms, where oil is processed and stored until it can be transported. FPSOs can either be built especially for the purpose or can be converted from former supertankers. FPSOs are installed in remote locations at the cost of complex technological installment procedures and high expenses. However, as these vessels eliminate the need for installing large fixed production platforms, their demand has continued to rise over the years.

In the past few years, the demand for FPSOs has also significantly increased owing to the rising offshore exploration activities across the globe. As onshore oil and gas resources continue to deplete at a constant rate and the demand for oil and gas continues to rise worldwide, oil and gas companies are on the lookout for new resources in deep and ultra-deep sea sites. This trend will have a major impact on the overall development of the FPSO market over the forecast period.

fpso-marketThe market has been segmented on the basis of three broad criteria: Type, depth of water, and geography. The market has been segmented on the basis of type into new-build, redeployed, and converted. From the perspective of water depth, the market has been examined for shallow water, deep water, and ultra-deep water. From a geographic standpoint, the market has been segmented into Asia, Americas, Europe, Oceania, and Africa.

Of the FPSO vessel types examined in the report, the segment of converted FPSOs dominates the global FPSO market. The primary factor ruling in the favor of this vessel type is the high cost of constructing a new FPSO unit, which, in comparison to the cost of converting an aging hull or a surplus oil tanker, is almost double. Looking at the rising costs of material and labor, the segment of converted FPSOs can be projected to lead in the coming years as well.

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Of the key regional markets for FPSO examined in the report, Americas held the dominant position in 2015 and is expected to lead the global market over the forecast period as well. The presence of vast offshore resources and several leading global oil and gas companies in the region will be the major drivers for FPSO vessels over the forecast period.

The report also includes detailed insights into the competitive landscape of the global FPSO market wherein a thorough overview of the business profile alongside other crucial market-related details pertaining to some of the most influential vendors in the market is provided. The report profiles companies such as MODEC, Inc., Aker Solutions ASA, SBM Offshore N.V., Hyundai Heavy Industries Co., Ltd., Yinson Holdings Berhad, Teekay Corporation, Samsung Heavy Industries Co., Ltd., BW Offshore, Bumi Armada Berhad, and Bluewater Energy Services B.V.

The market has been segmented as follows:

Global FPSO Market: By Type

Converted

New-build

Redeployed

Global FPSO Market: By Water Depth

Shallow water

Deepwater

Ultra-deepwater

Global FPSO Market: By Geography

Americas

U.S.

Canada

Mexico

Brazil

Europe

U.K.

Norway

Italy

Asia

India

China

Southeast Asia

Africa

West Africa

Rest of Africa

Oceania

Australia

New Zealand

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

Contact

Mr. Sudip S.

90 Sate Street, Suite 700

Albany, NY 12207

Tel: +1-518-618-1030

USA - Canada Toll Free: 866-552-3453

Email: sales@transparencymarketresearch.com

Website: http://www.transparencymarketresearch.com/

Global FPSO Market is Expected to Reach USD 43.39 Billion in 2021: Transparency Market Research

FPSO Market, By Type (Converted, New-build, and Redeployed), By Water Depth (Shallow water, Deepwater, and Ultra-deepwater) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2021,” market was valued at USD 15.86 billion in 2014; and is expected to reach USD 43.39 billion in 2021, growing at a CAGR of 16.2% from 2015 to 2021.

FPSO vessels are classified as a type of FPS, capable of offshore production, storage, and offloading of oil and gas. Generally, appearance of an FPSO unit is similar to a ship, integrated with processing and production facilities onboard. The global FPSO market is expected to see a robust growth during the forecast period attributed to increasing investment for offshore exploration of oil and gas, driven by depletion of existing onshore reserves. FPSO vessels are capable of avoiding emergency situations such as typhoons, cyclones, and icebergs by shifting or moving it to safe locations when required. Moreover, after depletion of the operational oil fields, FPSOs can be moored to other oil fields providing mobility and flexibility of operations to FPSO operators and contractors. The FPSO market is expected to witness robust growth, attributed to the huge demand for cost effective solutions for offshore oil and gas production and increasing application of FPSOs in harsh environments and remote locations.

However, requirement of high initial investment and substantially huge financing for the construction and building of a new FPSO unit are restraining the market growth. Additionally, the cost of operation, testing, and deployment adds up to the total investment in an FPSO vessel. Furthermore, factors such as rising cost of materials and labor due to inflation is further affecting the return of investments (ROI) of FPSO operators. Moreover, fluctuation in petroleum prices typically influence a company’s decision to invest in a new project development, upgrade of existing facilities, and improve recovery from producing fields. All these factors are acting as major restraints for growth of the FPSO market during the forecast period.

Geographically, Americas dominated the FPSO market in 2014 and the region is anticipated to continue its leading position till 2021. Key contributors to the FPSO market in Americas include the U.S., Canada, Mexico, and Brazil. Growth in this region is attributed to the rise in investment for exploration of oil reserves offshore of Brazil. This in turn is leading to development of new oil fields in the region. Capital expenditure in Latin America, predominantly offshore of Brazil, is expected to constitute majority of the share of the global FPSO capex during the forecast period. Due to this factor, demand for FPSOs is expected to remain high in the region during the forecast period.

Key contributors to the FPSO market in Europe includes: the U.K., Italy, and Norway. Investments for deepwater explorations in North Sea and Barents Sea have gained significantly during the past few years. Due to this factor, the demand for installation of FPSO units in Europe region is expected to expand, driving the market growth during the forecast period.

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The market in Asia is expected to witness robust growth during the forecast period. Growth in the FPSO market in the region is attributed to ongoing exploration in deepwater by the countries in Southeast Asia. In addition, development of deepwater oil fields in countries such as Malaysia and Indonesia is also expected to be the key factor boosting the installation of FPSOs during the forecast period.

Africa FPSO market is further segmented into West Africa and rest of Africa. West Africa held the majority of the market share in 2014, in terms of revenue. Development of oil fields offshore of Ghana, Angola, Nigeria, and Guinea is the major factor driving the growth of the FPSO market in the Africa region.

Growth of FPSO market in Oceania is attributed to the presence of Australia and New Zealand in the region. On the basis of type, converted FPSO segment dominated the Oceania FPSO market in 2014. Rising demand for converted FPSOs for deployment in proposed fields offshore of Australia and New Zealand is driving the growth of the region during the forecast period.

Key players have also been profiled on the basis of financial overview, company overview, business strategies and recent developments in the field of FPSO industry. Major market participants profiled in this report include MODEC, Inc. (Japan), BW Offshore (Norway), Bumi Armada Berhad (Malaysia), Hyundai Heavy Industries Co., Ltd. (South Korea), SBM Offshore N.V. (Netherlands), Yinson Holdings Berhad (Malaysia), Bluewater Energy Services B.V. (Netherlands), and Teekay Corporation (Bermuda) among others.

The report studies the global FPSO market, and provides estimates in terms of revenue (USD Billion) from 2015 to 2021. Market estimates on the basis of type and water depth for each region. The market has been segmented as follows

Global FPSO Market: By Type

• Converted
• New-build
• Redeployed

Global FPSO Market: By Water Depth

• Shallow water
• Deepwater
• Ultra-deepwater

The report provides a cross-sectional analysis of all the above segments with respect to the following regions:

Global FPSO Market: By Geography

Americas

U.S.

Canada

Mexico

Brazil

Europe

U.K.

Norway

Italy

Asia

India

China

Southeast Asia

Africa

West Africa

Rest of Africa

Oceania

Australia

New Zealand

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

Contact

Mr. Sudip S.

90 Sate Street, Suite 700

Albany, NY 12207

Tel: +1-518-618-1030

USA - Canada Toll Free: 866-552-3453

Email: sales@transparencymarketresearch.com

Website: http://www.transparencymarketresearch.com/