Amid stabilising oil prices and a projected global growth of US$30 billion by 2025, Europe’s FPSO market is grappling with changing standards and sustainability issues.
At the same time, an ageing workforce, manpower shortages and rising costs continue to pose significant challenges for Europe’s FPSO industry. While overall market sentiment remains positive — with eight projects to be developed over the next decade — oil and gas professionals have to continue considering ways to move the industry forward to ensure long-term success.
This includes strengthening public-private partnerships, improving sustainability efforts, incorporating digitisation and automation, and exploring creative financing models to keep FPSO projects afloat in the North Sea.
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The topic of life extension of FPSO projects has gotten an increasing amount of attention over the last five years, especially since the 2014 downturn saw oil and gas firms focusing more intensely on cost-saving and long-term solutions.
Aside from minimising expenditure, FPSO life extension also shines the spotlight on issues of safety and integrity in the sector. To mitigate these issues, operators have turned to integrity assessment analysis to better prepare for the future.
In this report, we hear from Oil & Gas Authority UK’s Nils Cohrs, who discusses what companies should look out for when considering life extension, and how it can benefit operators.
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Among the numerous changes Europe's FPSO market has had to consider or make in order to ensure long-term success, low-manned — and often, autonomous — FPSOs have been a hot topic. But what are the pros and cons of such projects and how conducive is the current climate for their deployment? Click to find out.
Between 2020 and 2027, at least nine FPSO projects are set to develop or relocate in Europe, where shorter project lifespans and smaller fields translate to lower breakeven prices (approximately US$35/bbl) secure profitable projects for oil companies. Now that oil prices are stabilising at about US$60/bbl, this bodes well for the future of the FPSO market in the region.
Since 2018, three projects have been awarded in Norway and the UK: last year, Fluor secured the contract for a new-build FPSO for Shell’s Penguins project, while Teekay Offshore won a redeployment order for the Petrojarl Varg FPSO for Alpha Petroleum’s Cheviot project (both in the UK).