A total of 56 FPSO projects, between 2022 and 2027, are expected to commence their operations worldwide. Brazil leads the list with 22 followed by Guyana, with three already in production and three more under construction.
Norway-based energy research and business intelligence company Rystad Energy says the FPSO market witnessed a 50% increase in investments – from $6 billion to $9 billion – related to greenfield surface capital expenditure during 2023, momentum that is expected to continue throughout 2024.
Guyana’s Stabroek Block and Brazil’s pre-salt are largely responsible for this growth, with some of the largest FPSO projects being undertaken due to the significant oil reserves in their deepwater offshore fields.
OilNOW columnist, Cristina Caus, has said the FPSO growth is triggered by the declining rate of new onshore oil discoveries and the rising investments in offshore drilling, with the FPSOs being the most cost-efficient, quicker, mobile, and environmentally-friendly solution compared to the traditional rigs (like fixed platforms).
The ONE GUYANA, Errea Wittu and Jaguar FPSOs, all under construction for ExxonMobil’s Stabroek Block developments in Guyana, will add well over 750,000 barrels of oil per day (bpd) to Guyana’s output, which currently stands at around 660,000 bpd. ONE GUYANA has finished its final module lifts at the Seatrium yard in Singapore while the hull block for Errea Wittu has been completed and the Jaguar FPSO was recently launched.
Rystad Energy said that by 2030, capex for FPSOs is expected to exceed $70 billion, with approximately 85% of this allocated to projects in South America, Africa, and Asia.
“The scale of planned FPSO projects in these regions highlights their strategic importance in the global energy landscape, Rystad Energy said.
Guyana’s rapid increase in production is being propelled in part by ongoing optimization efforts at the FPSOs.
ExxonMobil’s Chief Executive Officer, Darren Woods, said the company’s “design one, build many” concept is a huge factor in the consistent production ramp-up at its Guyana projects.
Optimization efforts ‘perfectly within operating envelope of FPSOs’, says SBM Offshore
