Report Overview
The Global Floating Production Storage and Offloading Market size was worth US$ 25.20 million in 2023 and is estimated to reach US$ 38.99 million by 2031, growing at a CAGR of 5.61% during the forecast period (2024-2031).
Offshore oil and gas fields use floating production storage and offloading (FPSO) vessels to collect hydrocarbons from subsea oil reservoirs and transform them into oil, gas and water. The ships hold processed crude oil or natural gas until offloaded onto a shuttle tanker or transferred to refineries via an export pipeline.
Pumps, generators, storage tanks, control rooms and lodging facilities are available to assist in extracting and refining oil and gas in remote places at affordable costs. FPSO boats are more flexible, versatile, safe and time-efficient to offer a large storage capacity than conventional offshore oil & gas facilities. When a current oilfield is depleted, FPSO vessels can be transferred to a new place without the need for costly underwater oil pipelines.
As a result, it is gaining traction in frontier areas where local pipeline infrastructure is lacking and smaller oil and gas fields have become dry for years. They are also appropriate for adverse weather situations since they have detachable turret systems that can be withdrawn during an emergency and reattached to continue operations.
Market Scope
| Metrics | Details |
| CAGR | 5.61% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Application, End-user and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The market is expected to develop due to rising demand for offshore exploration and production activities and the exploitation of marginal oil reserves. However, hefty installation costs may stifle expansion during the forecast period.
The rising focus on offshore exploration and production activities
Because of the increased focus on offshore exploration and production activities and increased exploration in deep and ultra-deepwater, the FPSO market is predicted to grow rapidly. As per the International Energy Agency (IEA), annual capital investment in offshore oil and gas production is expected to increase dramatically, boosting industry growth. Furthermore, FPSOs are supported by the exhaustion of onshore oil sources.
The growing demand for integrated compact integrated systems in deep and ultra-deepwater offshore reserves to combat harsh circumstances will boost FPSO market growth in six years. Due to cost-effective and efficient production processes with high yield potential.
The rise in exploitation activities of marginal oil reserves
Increased exploitation of marginal oil deposits in remote offshore areas, along with the ability of FPSOs to work without the help of a fixed structure, are expected to have a favorable impact on market development. For example, an oil field was discovered in Australia's North Western Shelf in 2018. Furthermore, the market is predicted to develop due to the capacity of such units to survive adverse weather conditions.
Other reasons that have aided the growth of the floating production storage and offloading business include marginal fields and difficult conditions. Over the next few years, new E&P activities in offshore shale fields are likely to boost FPSO requirements.
High installation costs
Operational costs were calculated using general operating expenses for facilities and extrapolated for unknown facilities using benchmarks based on facility type, size, production and age. While conceptually simple, an oilfield's risers and flowlines are some of the most crucial components, requiring a high level of technical sophistication and, as a result, a significant capital cost.
Market Segment Analysis
By type, the floating production storage & offloading market is segmented into converted and new-build.
The converted segment holds the lion's share
The converted category is expected to take the largest proportion of the market. Converted FPSOs are floating production, storage and offloading vessels created by altering an existing transportation vessel, often a crude oil shuttle tanker. Converting a tanker to an FPSO takes a few months. A new-build FPSO, on the other hand, takes several years to construct. As a result, the market for converted floating production storage and offloading is expected to develop significantly.
Market Geographical Analysis
Rising investments in North America
The offshore oil and natural gas business are critical to U.S. energy supply, economic growth and employment creation. The oil & natural gas industry supports jobs in various manufacturing & service businesses, including oil & natural gas machinery, air & sea transportation and legal & insurance services.
Increasing investments to support energy infrastructure growth and increased demand for offshore oil and gas production in countries like Mexico will propel the floating production storage and offloading market forward.
Market Competitive Landscape
Major players in the market include Bumi Armada, SBM Offshore, Bluewater Energy Services, Teekay, Shell, ExxonMobil, Petrobras, Chevron, BW Offshore and MODEC.
Bumi Armada
Bumi Armada Berhad (BAB) is a global offshore energy facilities and services provider headquartered in Malaysia. The company boasts a diverse workforce of over 800 individuals from more than 23 nationalities, bringing diverse experiences and cultural perspectives. Bumi Armada Berhad is actively expanding its presence in the Upstream Business sector across Asia, while also developing low-carbon solutions to support the transition to cleaner energy. Bumi Armada Berhad company’s primary focus remains strengthening its core business in Floating Production Storage and Offloading (FPSO) units, alongside exploring new opportunities in the Upstream Business.
COVID-19 Impact Analysis
The pandemic produced significant disruptions in global supply chains, delaying the delivery of critical equipment and materials required for FPSO installation and maintenance. It caused the postponement of ongoing projects and the delay in the commissioning of new FPSOs. Restrictions on transportation and the requirement for social separation hindered the availability of trained labor and technical professionals on-site, further delayed project deadlines.
Many offshore personnel were subjected to quarantine restrictions, affecting operations and maintenance schedules. Due to economic uncertainties and financial strains created by the epidemic, some corporations canceled or postponed planned FPSO projects. It was especially noticeable in initiatives that were in the early stages of development or had considerable financial risks.
Russia-Ukraine War Impact
The conflict between Russia and Ukraine has significantly affected the Floating Production Storage and Offloading (FPSO) industry, primarily due to disruptions in the supply chain and shifts in energy markets. The conflict has prompted a reevaluation of energy security, prompting several nations to explore alternative energy sources and reduce the reliance on Russian oil & gas.
The industry's transformation has led to an increased need for FPSO units as operators strive to tap into fresh offshore territories to compensate for reduced production and meet energy demands. In addition, the current geopolitical situation and the implementation of sanctions have affected the procurement of necessary materials and components for the construction and maintenance of FPSOs.
Companies are facing delays and expense escalations due to supply chain disruptions and increased regional risk. The challenges mentioned have led to a more cautious investment approach in the FPSO industry, with a focus on minimizing risks and ensuring operational stability amidst ongoing conflicts.
By Propulsion
- Self-Propelled
- Towed
By Hull Type
- Single Hull
- Double Hull
By Type
- New Built
- Converted
By Usage
- Shallow Water
- Deep Water
- Ultra-deep Water
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- In January 2024, Offshore Frontier Solution Pte Ltd in Singapore, a joint venture between MODEC and Toyo Engineering Corporation, selected ABB to supply a comprehensive electrical system and digital solutions for an ExxonMobil floating production storage and offloading (FPSO) vessel that will be deployed in the South American Uaru oil field. Errea Wittu, the offshore FPSO, will be stationed around 200 kilometers off the coast of Guyana.
- MODEC, Inc. has revealed plans to open a new office in Kuala Lumpur, Malaysia in May 2024. This expansion, led by Offshore Frontier Solutions Pte. Ltd., is dedicated to supporting Engineering, Procurement, Construction and Installation (EPCI) projects for floating offshore solutions. The initiative aims to generate more than 200 new job opportunities in engineering and other corporate support functions, intending to fill them by early 2025.
Why Purchase the Report?
- Visualize the composition of the floating production storage & offloading market segmentation by propulsion, hull type, usage, type and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the floating production storage & offloading market by analyzing trends and co-development deals.
- Excel data sheet with thousands of floating production storage & offloading market-level 4/5 segmentation points.
- Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global floating production storage & offloading market report would provide access to an approx. 69 market data tables, 59 figures and 209 pages.
Target Audience 2024
- Floating Production Storage & Offloading Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Emerging Companies
- Floating Production Storage & Offloading Manufacturers
