Semi-submersible or ship-based system are used to exploit the oil fields. The floating production system has three main components: the Floating Production Vessel (FPV), Mooring System and Subsea System, which include the risers and well system. FPS processes and offloads hydrocarbons without storing them. It is an umbrella term for all the vessels and platforms that come under its ambit. Floating production systems are widely used in current times in both shallow and deep water activities. It is largely used in drilling locations at the ultra-deep depths over 1500 m depth.
Floating Production System Market Outlook
- Consumption of floating production systems is largely dependent on new deliveries of the vessels as well as retirement of the ones currently in service. Further, the fleet utilization rates also determine the fate of the floating production systems industry. Further, given that some are made on converted oil tankers, the retirement of oil tankers also determines the release of new floating production systems.
- The market is also subject to the trends in the oil prices and the overall petroleum industry. These are among the key supply-side factors driving the market. Stabilization of oil prices in the coming years would bolster the growth of the overall petroleum industry and consequently the floating production system industry would witness a growth as well.
- Deep-water utilization of the vessels would be another key market driver as shallow water reserves show a depleting trend, pushing the key players to explore deeper waters. This would inevitably raise the demand for the floating production systems.
Floating Production System Market Segmental Overview
- An FPSO enables the processing and storage of oil and gas when at sea. It stands for Floating Production Storage and Offloading (FPSO). These vessels are used widely by the offshore industry and are one of the primary methods of oil and gas processing and storage. They are usually employed and leased by oil and gas companies.
- Dwindling onshore and shallow water reserves are pushing the key players to explore deeper waters. This would drive the floating production system market for deep water application over the forecast period.
- Converted floating production systems are more economical from the point of view of cost and asset management as well as shorter lead times. The segment is expected to perform better than the new FPSs given the economic advantages.
- The global floating production system market is primarily studied for power rating, phase, application, and geography.
Floating Production System Market Key Players
The major companies operating in the floating production system market include Aker Solutions, Bumi Armada Berhad, BW Offshore, DSME Co.,Ltd, InterMoor, Keppel Offshore & Marine, McDermott, MODEC, Inc, National Oilwell Varco, Petrobras, Samsung Heavy Industries Co ltd, SBM Offshore, TechnipFMC plc, and Worley among others.
The key players in the floating production system market would focus on technological improvement and environmental sustainability as key incorporations into the future product lineups given the carbon footprint of the industry. Given the high upfront cost of new floating production systems, the key players would increasingly consider employing converted FPSs. Geographic expansion and mergers & acquisitions are another way the key players are developing the reach and growth of the market.