NEW YORK, June 1, 2021 (Newswire.com) - The deepwater sector is rapidly accelerating out of the great market downturn. That's the conclusion of an in-depth market analysis just completed by World Energy Reports (WER) / International Maritime Associated (IMA)
Oil inventory has been brought to below seasonal average, crude is trading in the high $60s, deepwater exploration and development has been rebounding and the number of deepwater projects lined up for investment commitment in 2021/22 is growing.
According to Jim McCaul, head of IMA/WER, "Almost two dozen deepwater projects requiring either an FPSO or production semi look likely to proceed to development by the end next year. EPC contracts for the production units will have an aggregate value of $35 to $40 billion. This is a much higher near-term ordering pace and contract value than anticipated six months ago."
Explaining the more optimistic outlook, McCaul said, "When we made our five-year forecast of production floater orders in November, the virus was spreading fast, a vaccine was not yet available and the global economy was sputtering. Rebound in the deepwater sector appeared to be two to three years off, and our five-year forecast of production floater orders was skewed toward the 2023-2025 timeframe."
McCaul added, "The early period of our forecast—where we projected only dozen or so orders in 2021/22—is clearly looking conservative, given the strong pick-up in activity now being seen."
IMA/WER's floating production report has up-to-date details and contracting status for more than 200 floater projects in the planning stage. Around 55% of these envisage use of an FPSO. Another 10% will require a production semi. The rest are LNG and floating storage projects. The report also has details for 44 production or storage floaters on order, more than 300 floating production units in service and 44 production floaters available for redeployment contracts.
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Source: World Energy Reports