Floating Production Storage Offloading (FPSO) Market

Floating Production Storage Offloading Market Size (2024 - 2029):

The Global Floating Production Storage Offloading Market is predicted to reach USD 46.84 billion in 2029 from an estimated USD 27.44 billion in 2023, registering a CAGR of 11.29% over the outlook period 2024-2029.

Market Trends:

Floating Production Storage and Offloading vessels are offshore production units that include hydrocarbon processing equipment and an oil and gas storage facility on a single platform. The basic design of an FPSO incorporates a floating vessel, including processing equipment, known as roofs, on board the ship's deck and the storage facility under the hull. An FPSO, post-treatment, stores the product before periodically discharging it to tankers or transporting the treated oil through a subsea pipeline infrastructure. Depletion of onshore oil reserves and expansion in offshore exploration activities will drive the uptake of the product during the foreseen period.

Market Drivers:

Various factors are driving the development of the FPSO industry, such as the escalating call for oil, mainly from developing economies, the depletion of easily accessible oil reserves, etc. The escalating number of discoveries and the exploitation of marginal oil reserves at remote offshore sites, together with the ability of FPSOs to operate without fixed structural support, will positively influence the market expansion. Furthermore, the ability of these units to be reassigned to another oil field followed by depletion of a field, as well as immunity to harsh weather conditions, will further drive their deployment. The depletion of oil and natural gas resources has led to the development of deep drilling techniques that attract a very high cost of capital investment. Deep drilling techniques also complicate the process and increase the cycle time and resources required to extract oil and gas. These benefits have led to the augmented adoption of FPSOs. Additionally, the exploration of wells with marginal reserves and the ability of FPSOs to operate without fixed support further increases the expansion of the global FPSO market.

Market Restraints:

The reliability of subsea units, environmental concerns, and costs associated with response operations are predicted to limit the expansion of the floating production storage and offloading market.

Market Opportunities:

The emerging call for compact systems integrated into deep and ultra-deep offshore reservoirs to counter extreme conditions is predicted to increase the expansion of the FPSO market over the next six years. In addition, the market is believed to be gaining a share in the ultra-deep offshore regions through a profitable and efficient production process with high yield potential. The high cost of installing ultra-deep- and deep-water oil and gas production and transportation facilities is likely to further stimulate the call for FPSOs. Marginal fields and harsh environments have been other factors that have supported floating production storage and dump market expansion. New exploration and production activities in offshore shale fields are predicted to strengthen FPSO requirements in the coming years.

Market Recent Developments:

• Brazilian oil company Petrobras will launch a tender for the construction of Brazil's largest floating production storage and offloading vessel (FPSO).

FLOATING PRODUCTION STORAGE OFFLOADING MARKET REPORT COVERAGE

Market Segmentation:

Floating Production Storage Offloading Market - By Type:

• Converted

• New-Build

The converted segment is predicted to account for the largest market share by 2024. Converted FPSOs are floating production storage and offloading vessels developed by modifying an existing transport vessel, typically a crude oil shuttle tanker.

Floating Production Storage Offloading Market - By Hull Type:

• Single

• Double

Double hull FPSOs have two or a double waterproof outer layer, which covers the entire structure of the boat, as they protect the boat from marine pollution and ingress of water.

Floating Production Storage Offloading Market - By Propulsion:

• Self-Propelled

• Towed

High preference is given to the self-propelled floating production storage and unloading segment, as it can move without external propulsion and the cost of transportation is lower than towed FPSOs.

Floating Production Storage Offloading Market - By Usage:

• Shallow Water
• Deep Water
• Ultra-Deep Water

FPSOs employed in shallow waters are intended for oil and gas exploration and production applications within 500 meters of water depth. The cost associated with exploration and production in shallow waters is comparatively lower than in deep and ultra-deep waters, which should drive call for floating storage and discharge.

Market Regional Analysis:

The Floating Production Storage Offloading (FPSO) Industry includes

• North America - U.S, Canada
• Europe - The UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe.
• Asia Pacific - India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC.
• Latin America - Brazil, Mexico, Argentina, Chile & Rest of LATAM.
• Middle East & Africa - KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, rest of MEA.

Latin America's market capitalization in 2018 was valued at more than $ 18 billion. The discovery of vast oil reserves in the pre-saline geological strata along with favorable government policies and escalating investments will stimulate the expansion of the industry. According to Petrobras, the Santos and Campos basins in Brazil contain more than 16 billion barrels of pre-salt oil reserves. Also, the introduction of new local content regulations in Brazil, which imply simpler and lower requirements with reduced fines for exploration and production contracts, will effectively boost the deployment of FPSOs in the country. The expansion of the European market is largely driven by the implementation of new projects in the UK and Norway. The market expansion is largely attributed to the region's strong commitment to emission reduction targets and the growing importance of diversifying the energy supply. The Middle East and Africa market is characterized by highly customized new build and large capacity vessels, suitable for oil fields located in deep and ultra-deep waters, mainly in the offshore regions of Nigeria, Angola, and Ghana. In addition, a multitude of low-capex floating solutions suitable for the shallower oil fields and comparatively less severe weather conditions prevailing in the region will drive the expansion of the Asia Pacific FPSO market.

Market Key Players:

1. Bumi Armada
2. BW Offshore
3. CNOOC
4. MODEC
5. SBM Offshore
6. Woodside Petroleum
7. Petrobras
8. DSME
9. Hyundai Heavy Industries
10. Samsung Heavy Industries
11. KBR
12. Saipem
13. Technip