Press Release

Floating Production System Market is expected to grow at an impressive CAGR

The floating production system market is expected to grow during the forecast period of 2024-2028 due to increasing offshore exploration activities and growing demand for hydrocarbons.

According to TechSci Research report, Floating Production System Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2028F, the Global Floating Production System Market is anticipated to register robust growth during the forecast period 2028.

FPSO (Floating Production Storage and Offloading) and FSO (Floating Storage and Offloading) systems are the primary methods for many offshore oil and gas producing areas across the world. An FPSO is a floating body that receives liquid (crude oil, water, and various others) from an undersea reservoir through risers and separates the liquid into crude oil, natural gas, water, and pollutants within an upper onboard production facility. formula production system. Crude oil stored in the FPSO's storage tanks is transferred to shuttle tankers to be shipped to the market or further refined on land. Most FPSO/FSO are ship-shaped and can be anchored to the seabed using a variety of mooring systems, the choice of which is dictated by the specific environment. Suitable for a wide range of water depths and environmental conditions, it can be designed to remain on site for 20+ years of continuous operation.

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The global floating production system market is bifurcated based on type, water depth, build, and region. Based on type, the market is bifurcated into floating production, storage, and offloading (FPSO), tension leg platforms (TLP), spar platform, and others. During the projected period, the FPSO segment is expected to be the dominant segment during the forecast period. FPSOs are the most popular floating production systems due to their additional ability to store and offload the produced crude oil. This makes FPSOs to dominate the market and is expected to continue growing during the forecast period. FPSOs are useful for long-distance travel and offer operators the opportunity to be deployed in various regions and disciplines throughout their lifetime. Brazil has deployed the largest number of FPSOs and is expected to continue to do so during the forecast period. As of July 2021, 41 FPSOs are in operation in the country, with another 11 on order. Increasing energy demand is expected to drive the floating production system market over the next decade. Operators are often forced to work in much deeper water that require sophisticated techniques and equipment. It also requires oil storage and offloading capabilities. Such factors are expected to drive the market for floating production systems during the forecast period.

On the basis of region, the market is bifurcated into North America, Asia-Pacific, Europe, South America, and Middle East & Africa. During the projected period, South America is expected to be the region with the largest market share during the forecast period. South America is expected to significantly boost the global floating production system market. Brazil and Guyana are the most important countries in the market, and the demand for FPS in these countries has increased significantly in recent years. The offshore oil and gas industry is expected to witness large-scale investments during the forecast period. In 2020, Rio de Janeiro was Brazil's largest crude oil producer, all of which was offshore. The state recorded production of about 853 million barrels. In 2021, 7 out of 10 FPSO projects will be from Brazil, with 3 more projects expected to be added to the portfolio in 2022. In October 2022, Sembcorp Marine won USD3 billion contract for a new FPSO for Petrobras. FPSO P-82 is deployed in the Buzios offshore field in the Santos Basin, Brazil. In November 2021, SBM Offshore secured FEED contract to deploy FPSO vessel for her Yellowtail development project in Guyana. The order was placed by Esso Exploration and Production Guyana Limited, a subsidiary of Exxon Mobil. The company plans to manufacture, install, and operate the unit for approximately two years after production begins. With a production capacity of 250,000 barrels per day, the FPSO is expected to begin production in 2025. Therefore, the South America region is expected to hold a large market share due to such developments during the forecast period.

Key market players in the global floating production system market are:

  • BW Offshore Limited
  • Malaysia Marine and Heavy Engineering SDN BHD
  • Samsung Heavy Industries Co. Ltd
  • SBM Offshore NV
  • Bumi Armada Berhad
  • Hyundai Heavy Industries Co. Ltd
  • Mitsubishi Heavy Industries Ltd
  • TechnipFMC PLC
  • MODEC Inc.
  • Teekay Corporation

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“Increasing offshore oil & gas exploration is expected to drive the global floating production system market during the forecast period. The South America region is expected to dominate the market due to growing investments in countries such as Brazil & Guyana. The FPSO segment is expected to be the dominant segment due to their additional ability to store and offload the produced crude oil,” said, Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“Floating Production System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F, By Type (Floating Production, Storage, and Offloading (FPSO), Tension Leg Platforms (TLP), Spar Platform and Others), By Water Depth (Shallow Water, Deepwater, Ultra-Deepwater), By Build (New Build, Conversion), By Regionhas evaluated the future growth potential of the global floating production system market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global floating production system market.

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