Cpzfykdrppziaxwhm3fq

Full impact of the financial crisis on the FPSO sector yet to be felt

Press Releases   •   Jun 27, 2012 13:44 SGT

Oil & Gas iQ and the FPSO Network, have co – researched a study with 158 companies in the FPSO sector, who are willing to share their thoughts on the trends in the floating, production, storage and offloading sector.

Media no image

Bumi Armada and SBM Offshore to spend $170 million on FPSO upgrading

News   •   Jun 19, 2012 10:00 SGT

With the FPSO sector growing at a phenomenal rate, Bumi Armada and SBM Offshore are shelling out close to $170 million upgrade its current FPSOs .  Keppel Shipyard has secured the Floating Production Storage and Offloading (FPSO) upgrading projects SBM Offshore and Bumi Armada.

The first project is from SBM Offshore to refurbish and upgrade an existing FPSO vessel, FPSO Xikomba. Work on this FPSO unit is expected to be completed by the third quarter of  2013.

Xikomba will be leased by Eni Angola S.p.A for 12 years for the development of Block 15/06, offshore Angola, FPSO Xikomba is jointly owned by SBM Offshore and Sonangol, Angola's national oil and gas company.

"Long-term business partnerships are key to our performance, our ability to deliver and our ambition in furthering our lead in the FPSO market. The award of the FPSO Xikomba is another milestone in this deep long-term relationship," said Bruno Chabas, Chief Executive Officer of SBM Offshore, said,

Keppel Shipyard's scope of work on FPSO Xikomba comprises life extension, refurbishment and upgrading of existing topside modules and turret mooring system as well as the installation and integration of new topside modules. The FPSO vessel will subsequently proceed to Angola for completion.

For Bumi Armada, Keppel Shipyard will modify and upgrade FPSO Armada Claire. This includes refurbishment and life extension works as well as installation and integration of topside modules. Work is expected to be completed by the fourth quarter of 2013.

Upon completion, FPSO Armada Claire will be deployed in the Balnaves Field, north-west Australia.

"With the trust and collaboration of committed and capable business partners, we have grown and enhanced our fleet of quality FPSO vessels. The Armada Claire project is our tenth major collaboration with Keppel Shipyard, and we are confident that it will be professionally executed," said Hassan Basma, Executive Director and Chief Executive Officer of Bumi Armada.

With the FPSO sector growing at a phenomenal rate, Bumi Armada and SBM Offshore are shelling out close to $170 million upgrade its current FPSOs.

Read more »
Media no image

Global FPSO Forecast 2012

Press Releases   •   Jun 06, 2012 10:10 SGT

In the lead up to the 13th Annual FPSO Congress, Oil & Gas iQ has put together an impressive highlights video that will showcase the growth of the FPSO sector and what is driving this development.

We also tell how much the sector will be worth in the future and why.

Watch the complete video

What's driving oil demand and how is the future of the FPSO sector shaping up? This forecast analyses and predicts the future trends that will happen in the global FPSO sector.

Read more »
Media no image

FPSO market set to reach US$16 billion by 2014

News   •   Jun 04, 2012 10:56 SGT

Until 2008, there were many new speculative players planning to enter the FPSO market. By the time 2009 came around it all rather fell apart.

Small-time operations were financing from external debt providers simply because credit markets were the tightest that they had been in years. This all led to many of the new start-up and smaller players exiting the market shortly into 2009.

Those that remained and could weather the crisis are still active and are enjoying the resurgent economic upswing. Globally, monetary policy is loosening and we have seen activity expanding globally from East to West. This has changed the entire scope of the sector as it is now not uncommon to see projects in Brazil financed from Japan or projects in West Africa being financed from China.

Deepwater production is set to double and capex is expected to increase by as much as 179% by the year 2015, to a decent $205 billion. On the other hand, drilling and subsea processing emerging will result in a little more than US$74.6 billion for the sector by the year 2015.  

As a result of the 2008 downturn and subsequent turn of fortunes in 2009 and 2010 we have seen a slight increase in scrutiny on the part of the private equity sector with respect to the FPSO market, this seems to be the right level of scrutiny.

Consequently, the market is now seeing balanced contracting regimes, which was forced in a way, by the new entrants to the market from the private equity side. Numerous interviews with dominant players in the industry seem to confirm this feeling and continue to reassure us that, on the whole, FPSO projects are returning to pre-2008 level and a turn of fortunes for the sector is imminent.

There was a material decrease in orders since 2009 but it seems that market has bottomed last year and there is an increasing share of the market which is being leased to FPSOs.

The deepwater horizon disaster is unlikely to impact the FPSO sector as the Gulf of Mexico accounts for a small part of the market and in the long term it seems as though growth will return as the FPSO market is set to reach US$16 billion by 2014.

Jason Waldie awill be speaking at the 13th Annual FPSO Congress. To register for 13th Annual FPSO Congress send an email to enquiry@fpso.com.sg  or log onto www.fpsoasia.com for the complete agenda that will be covered at the 13th Annual FPSO Congress.  

 

Until 2008, there were many new speculative players planning to enter the FPSO market. By the time 2009 came around it all rather fell apart.

Read more »
Media no image

The Inexorable Rise Of FPSO

News   •   Jun 01, 2012 17:26 SGT

With oil prices careening about the $100 per barrel mark, global demand for floating production, storage and offloading (FPSO) units is expected to double in the coming years until the end of the decade.

Consistently high crude prices, coupled with rapidly depleting shallow water and onshore reserves, are forcing exploration and production companies to forage deeper and further offshore than was previously viable. 

 FPSO vessels, then and now

Although offshore drilling started in earnest in the 1940s, the first FPSO vessel - the Shell Castellón - was launched in 1977 to service the Spanish Castellón field. Converted from a one-time oil tanker, the Castellón, was the progenitor of some 95 currently operating FPSO vessels sitting above fields from North America to Australasia.

Quantifying the growing demand for FPSO

At a cost of more than $1 billion each, FPSO units are hardly inexpensive but  their manoeuvrability and per-day operating costs makes them an attractive proposition today.

At least 127 out of the almost 200 upcoming offshore projects to be rolled out before 2020 will employ FPSO ships to harvest crude oil and natural gas.

The FPSO big hitters

Starting in 2008, the economic downturn engendered a flight of the small to mid-sized players in the FPSO arena, leaving only a handful of key providers to dominate the market.

Chief amongst these are the Dutch marine technology company SBM Offshore, Norway’s BW Offshore and Modec, a Japanese-based general contractor in the FPSO field.

As of 2010, these three dominate the sector, sitting on 44 percent of the FPSO market. The demise of smaller rivals, high entry barriers for newcomers and global industry wracked by tightening finances, the coming years will see further market consolidation of this FPSO triopoly. 

FPSO growth regions

FPSO has seen its biggest growth in areas with underdeveloped midstream capabilities and few or no seabed pipeline networks for the transportation of crude and natural gas.

Currently, the majority of the world's FPSO units are employed in South America, West Africa and the Asia-Pacific regions, and these will continue to be the main focuses of  growth in the coming decades, with a large concentration of vessels particularly in Brazilian and Chinese waters.

Speaking at a recent conference in Singapore, Stig Hoffmeyer, chief executive of Maersk FPSO affirmed: “I am confident that the industry will grow significantly in the coming 10, 20 and 30 years.”

 “I have never been in an industry before where the future outlook is so bright.”

 

With oil prices careening about the $100 per barrel mark, global demand for floating production, storage and offloading (FPSO) units is expected to double in the coming years until the end of the decade.

Read more »
Media no image

FPSO growth set to increase as deeper fields are developed

News   •   Jun 01, 2012 17:23 SGT

Bryan Camoens: Could you please outline the current position of FPSO’s in today’s field development strategy?

 David Boggs: FPSOs are the most popular floating production development option.  FPSOs are proven technology and have oil storage facilities.  Almost two - thirds of Floating production vessels are FPSOs.  The deepest floating production system in the world is the recently installed BW Pioneer FPSO on the Cascade / Chinook field in 2600m of water.  As deeper and deeper fields are developed, FPSOs will be increasingly popular.  

Bryan Camoens: What are some of the challenges faced from evaluation to the final phase of construction?

David Boggs: The period between evaluations to delivery is typically many years, so the challenges include changes in foreign exchange rates, price of steel and fuel, and changes in law and regulations.

Bryan Camoens: Could you please outline some of the developments for a more balanced contracting regime in terms of project risk, responsibilities and cost?

David Boggs: Some contracts are now on a fixed rate of return, with the costs on an open book basis. This may enable the project to move forward more quickly, while ensuring a reasonable return for the contractor.  

Another option is for scopes of work which are difficult if not impossible to estimate years in advance, such as offshore installation, to be contracted on an open book/reimbursable basis.  This is a more equitable allocation of risk and cost.  

Bryan Camoens: What are some of the important design parameters for a successful FPSO?

David Boggs: Designed to meet the minimum requirements, with the potential for upgrades to allow for future changes.  Redundancy in critical systems, so that production can continue during maintenance. Sufficient accommodation during peak periods during commissioning and maintenance.  

 

 

 

David Boggs, Managing Director of Energy Maritime Associates explains why FPSO’s will only increasingly in popularity going forward. He also touches on the contracting regime and the design parameters for a successful FPSO.

Read more »
Media no image

13th Annual FPSO Congress Presents an Opportunity to Visit SBM’s FPSOs

News   •   May 28, 2012 17:15 SGT

“I found the Congress to be a great learning and networking opportunity. It was very well attended and I had no second thoughts about being a part of it again this year.” explained Jerry Joynson, Director, Proposals and Technology department from SBM Offshore. Apart from presenting at the 13th Annual FPSO Congress 2012 this year, Jerry and his team from SBM Offshore will entertain selected oil operators and subcontractors during a site visit to get a view of their FPSOs getting converted in Keppel shipyard, Singapore.

 In addition, Technip will welcome oil operators and vessel owners to visit their unique flexibles manufacturing facility in Johor Bahru, Malaysia. While attending a conference is in itself rewarding, for the first time in thirteen years, attendees will be elevated to a whole new level of conferencing experience with the opportunity to survey FPSO shipyards.

For the last twelve years, the Congress has proven to be the biggest platform to explore the opportunities and advancements in monetizing offshore reserves using FPSO technology. With recent market reports from Douglas Westwood predicting close to 130 FPS installations installed worldwide in the next four years, Singapore, this September, will play host again to the largest gathering of the FPSO community. The event attracted over 350 delegates, 25 exhibitors and 45 presentations last year, making it the most anticipated FPSO gathering

Ross Mierendorff, General Manager FPSO Operations in Nigeria for Bumi Armada sums it up perfectly, “12 successful years of the FPSO Congress journey can only make us long for more.”

Andrew Lamshed (VP, Bumi Armada), Lars Odeskaug (COO, Sevan Marine), Maarten Van Aller (COO, Petrofac), Antonio Cailao (CEO, PNOC) , Carlos Mastrangelo (Facilities Manager, Petrobras), Michael Hamblin (GM, Woodside Energy) and other C level executives from Bluewater, Teekay, Maersk will enrich the illustrious list of keynote speakers this year.

 

With exclusive geographical updates from Nigeria, Brazil, China, India, a revamped line up of presentations as well as topics in dedicated streams, and a whole host of technology power houses including ABB, Technip, Cetco,Wartsila, Subsea7, Hempel, Sherwin Williams, DPS, ABS are key highlights of the Congress agenda this year.

 

A brand new venue in Singapore Expo will help the Congress attain the next level through a vessel owner- oil operator led conference agenda thoroughly complemented by an exhibition from the service industry.

 

It has been 12 years since the FPSO Congress set sail and it has been a success story year after year. The stage is set for a much bigger event in 2012 as it continues to analyse the inexorable rise of FPSOs.

Email enquiry@iqpc.com.sg or visit www.fpsoasia.com to register your attendance.

 

 

About IQPC Worldwide:

For over thirty years, IQPC has helped the world's leading corporations solve their business challenges through the sharing of practical industry solutions and global best practice. In the process, the company has built a formidable reputation for quality and value. The world’s most progressive companies have benefited from IQPC’s unrivalled global reach, which has connected international expertise with regional and local leaders.

 

For more information, please contact:

Bryan Camoens

IQPC Worldwide

Tel: +65 6722 9406

Email: bryan.camoens@iqpc.com.sg

While attending a conference is in itself rewarding, for the first time in thirteen years, attendees will be elevated to a whole new level of conferencing experience with the opportunity to survey FPSO shipyards.

Read more »
Media no image

Deep water will remain the most significant activity in the oil industry

Press Releases   •   May 21, 2012 13:32 SGT

Bryan Camoens: Could you please outline the current position of FPSO’s in today’s field development strategy?

Jerry Joynson: The major discoveries are taking place in deep water and look to continue to do so in the foreseeable future, and hence FPSO’s will clearly be central to developing these deep water fields. The use of steel catenary risers connected to FPSOs, as demonstrated on the turret moored Espirito Santo in 2008, will extend their range beyond the current flexible riser limit of around 2,000m. Extraction of the massive arctic oil and gas reserves will require means to cope with the winter ice shelf, and disconnectable FPSOs will prove to be invaluable in this respect. The enormous flexibility of the FPSO will ensure its leading position in regions where there is no offshore oil export pipeline infrastructure.

Bryan Camoens: What are some of the challenges faced from evaluation to the final phase of construction?

Jerry Joynson: The challenges in achieving successful FPSO delivery are manifold, and are often client or regional specific. Local content requirements can be challenging to comply with, such as the 65% Brazilian content recently achieved on P57; bidding rules and a need for competitive tendering can hamper clients’ ability to carry out effective development in collaboration with FPSO suppliers; and resources will become tighter including the demand for experienced personnel as we pull out of the global recession.

Bryan Camoens: Could you please outline some of the developments for a more balanced contracting regime in terms of project risk, responsibilities and cost?

Jerry Joynson: Lease based projects can help reduce risks for clients, as the consequences of the detailed design decisions made in execution remain with the FPSO lease operator. Performance and incentive based contracts work well with lease contracts, and leases can also work to deliver lower life cycle costs.

Bryan Camoens: What are some of the technical specifications you must take into account when choosing FPSO technology to maximizing field productivity?

Jerry Joynson: Maximizing field productivity requires high availability of facilities, and enhanced recovery technologies including gas lift and water injection, which are now commonplace on FPSO’s. Sea bed pumping and ESP’s will also be applied and Shells Brazilian FPSO, Espirito Santo, leased from SBM, which is producing from a heavy oil field, has demonstrated the effective installation of seabed pumping powered from the FPSO via the turret mooring. SBM is now designing for Shell a work-over system for those pumps which is FPSO based.

High availability is strongly linked to robust design. Despite the absolute need for technical innovations it is demonstrably critical not to change too much from one FPSO to the next, building in past execution and fleet operating experience to ensure highest availability. Even where maximum productivity is not necessarily critical, project success is built on taking many incremental steps project by project, with a large core of staff experienced in the execution FPSO projects. 

Bryan Camoens: By 2020, what advances in new build fpso hull and marine systems will we see in the FPSO sector?

Jerry Joynson: Clearly the large demand for FPSO’s, many of which are required to be as large as possible in Brazil given the enormous scale of developments there, will require both new builds and conversions. Inevitably a fairly standardised new build FPSO hull will emerge triggered by the likes of the 8 FPSO hull order in Brazil, and shipyards focussed in this area could be expected to apply bulk carrier design and build philosophies to drive costs more in the direction of bulk crude carriers.

Jerry will be highlighting the strategies behind successful FPSO redeployment speaking at the 13th Annual FPSO Congress. Email enquiry@iqpc.com.sg  to register or for the complete list of speakers and topics that will be discussed at the 13th Annual FPSO Congress.

Jerry Joynson, Corporate Director, Concept Development of SBM Offshore outlines some of the challenges in achieving successful FPSO delivery to Oil & Gas IQ Editor Bryan Camoens. He also explains why we shouldn’t fix something that isn’t broke even though technical innovations are available.

Read more »

Contacts 1 contact

  • Press Contact
  • Divisional Marketing Director
  • Rani.Kuppusamy@iqpc.com.sg
  • +65 6722 9399

About FPSO Congress 2012

Asia Pacific’s largest and longest running FPSO congress

Agreed by the industry as the globe’s biggest FPSO industry event, the FPSO Congress attracted over 400 industry experts last year. The 13th edition of the program is back this year bigger and better.

After having discussions and meetings with over 70 experts from the industry, the FPSO Congress team understands your key drivers:

-Understanding contractual terms, field requirements & functional specifications precisely to kick start FPSO projects
-Developing a framework for efficient engineering, site management and subcontractor management with minimum capex spend
-Achieving co-ordination between design, engineering and commissioning to ensure on time delivery and handover
-Understanding the latest advancements in hull, topsides, mooring and accompanying FPSO technologies as fields continue to get deeper
-Minimising downtime, extending lifetime and ensuring efficient operations of the FPSO through thorough maintenance and asset integrity.

The FPSO Congress is tailor made for every stakeholder in the FPSO Industry.

Address

  • FPSO Congress 2012
  • #14-01 Robinson Centre 61 Robinson Road
  • 068893 Singapore

Links