Strong FPSO market expected to continue, says Rystad

Strong FPSO market expected to continue, says Rystad

The market for floating production, storage, and offloading (FPSO) units almost brushed off the pandemic’s effect in 2021 and is likely to continue apace in 2022, with 10 new awards expected, according to a Rystad Energy report. Two lease contracts were awarded in the fourth quarter of 2021, bringing the total for the year to 10 – up from just three in 2020 – a strong rebound for the FPSO market.

Demand for FPSO units in Brazil was a significant contributing factor that drove 2021 growth, with seven of last year’s 10 contract awards being Brazilian projects. The South American nation is expected to continue driving global awards in 2022, with an additional three FPSOs expected. Not only is Brazil delivering more awards, but the Brazilian projects are expected to be the largest in terms of production capability. For instance, the unit bound for P-80 will become the ninth in the Buzios area. It will have an oil processing capacity of around 225,000 barrels per day (bpd) and a gas processing capacity of about 12 million cubic meters per day, which is the same size as the FPSO Almirante Tamandare awarded in early 2021.