Two years floating production equipment market prospect is optim

After a slump in 2016, the market for floating production units finally recovered. As oil prices rebound, cost deflation and standardization improve, orders for FPSO and FLNG are expected to grow substantially by 2020, with a total potential value of $25 billion, and Brazil and West Africa will continue to be key markets.

Clarkson predicted in a recent report that by the end of 2020, there will be 33 new orders for FPSO and FLNG, six of which will be placed within this year, 13 in 2009 and 14 in 2020. In addition, there may be 5 new semi submersible production units and 6 new orders for self elevating production units.

According to Clarkson, of the 33 new orders before the end of 2020, FPSO accounted for 76% and FLNG for 24%. In terms of the total value of potential contracts of US $25 billion, FPSO accounted for 56% and FLNG accounted for 44%. Latin America (mainly Brazil) will have 10 new orders and 8 new orders in West Africa.