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Global floating production spend to see huge growth

Latin America will account for half of the projected floating production Capex over the next five years according to a new Douglas-Westwood report.

Douglas Westwood director Steve Robertson commented, “The dominance of this region is largely due to local Brazilian operators Petrobras and OGX plans to massively increase their fleets of floating production systems. A key driver is Petrobras’s multi-FPS developments in its pre-salt fields in the Campos and Santos basins. We forecast that Latin American Capex for the 2012-2016 period will total $34bn, with 50 FPS deployments, a huge growth on the $12.5bn spent during the previous five-years.”

Douglas-Westwood forecasts a total of 134 installations over the 2012-2016 period, representing a global Capex of $68bn.

“The deepwater basins off West Africa, Brazil and in the US Gulf of Mexico have become established as the focus areas for FPS developments. Africa is the second most important region, although only accounting for 18% of forecast spend, compared to 50% for Latin America. Like Latin America, a large proportion of the African installations will take place in deepwater. North American spend from 2012-2016 is muted, with less activity forecast than for Asia or Western Europe,” he said.

“The forecast of total global installations represent a 37% increase on the 2007-2011 period (when there were 98) and a corresponding increase of 81% in expenditure,” noted Lucy Miller, the lead author of the report. “The disparity between the two percentages is a reflection of factors such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content raising the cost of relevant equipment and services and cost inflation.”

Published on 13/10/2011

 
 

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