A floating, production, storage, and offloading (FPSO) vessel is a kind of floating production system utilized for storing, producing, and offloading gas and oil offshore. It is a converted oil tanker and looks somewhat similar to a ship with onboard processing and production facilities. In addition, FPSOs comprise offloading facilities for transporting processed gas and oil to onshore receiving facilities via a shuttle tanker. The ongoing rise in oil and gas production and exploration in offshore fields and ultra-deep waters is predicted to boost the global FPSO market in the coming years.
The rising consumption of oil and gas globally, especially in the sectors of transportation and power generation, has encouraged companies to up their exploration of fossil fuels. On the basis of type, the market is segmented into converted, redeployed, and new-build FPSOs. Amongst these, in 2014, the segment of converted FPSOs led the market. Factors such as the faster deployment and low capital need for the installation of converted FPSOs in comparison to newly built FPSOs have resulted in the superiority of this segment.
Increasing Investments in Gas Exploration and Offshore Oil to Boost FPSO Market
The market for FPSO is predicted to exhibit exponential growth in forthcoming years owing to increasing investments in gas exploration and offshore oil, particularly within ultra-deep waters ranging from 1500 meters and above and deep waters ranging from 500 to 1,499 meters deep. In addition, the descending levels of oil and gas have raised the need for exploration of new gas and oil reserves in order to meet future energy requirements. This is why gas and oil exploration companies have shifted exploration to offshore from onshore, thus fuelling the market for FPSOs.
Additionally, the need for huge investment and the growing technical restraints related to the installation of fixed production platforms in remote areas is also fuelling the market for FPSO. Furthermore, their ability to work even in harsh environments enables FPSOs to be moored at various locations, hence raising their demand amongst producers of oil and gas globally. On the other hand, volatile oil prices have affected the cash flow within the market for FPSO, thus restraining the market. In addition, the need for high capital investment for building and construction of new FPSOs is further posing a negative impact on the growth of the market.
Americas to Lead Market owing to Development in Oilfields
On the basis of geography, the FPSO market is segmented into the Americas, Asia, Europe, Oceania, and Africa. Amongst these, the Americas held the biggest share in the market in 2015 and are expected to lead the market in the coming years. The reason for the superiority of this region is the development in oilfields off the coast of Brazil. On the other hand, Southeast Asia and West Africa have also emerged as key markets for FPSOs. This is due to the rising count of FPSOs being installed in ultra-deep water and deep-water offshore units within these regions.
The prime players dominant in the market are SBM Offshore N.V. (Netherlands), MODEC, Inc. (Japan), BW Offshore (Norway), Bumi Armada Berhad (Malaysia), Teekay Corporation (Bermuda), and Hyundai Heavy Industries Co., Ltd. (South Korea), among others.
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