This session aims to discuss the state of the FPSO nation and market trends in upcoming near future. As the FPSO market is set to grow from its current market value of just over $28 billion to $30 billion by 2025. Ongoing offshore exploration and production activities compelled by depletion of onshore oil & gas reserves are poised to transform market trends over 2019- 2025. On top of that, at least 33 FPSOs are expected to be sanctioned from 2019 to 2021 due to the pick-up in oil and gas activities in the offshore sector.
The recent surge in COVID-19 cases is stifling the once prophesised V-shaped recovery in oil demand. Over the next months, there is a risk of higher volatility as more supply is expected to hits the market and demand recovery fails to keep pace. In the current low oil price environment, operators are feeling the pressure to find tangible cost-saving opportunities to ensure that their future work remains economical. Another concern arising in front of operators is if profitability of producing fields will degrade to such an extent that prematurely shutting down ageing fields will prove to be the most rational decision.