Floating production storage and offloading (FPSO) is a type of sailing vessel used in the offshore oil and gas industry for the production, processing, storage, and offloading of oil and gas. Floating production storage and offloading are versatile units that operate in remote offshore locations where installing fixed production platforms is not feasible or economically viable.
The main types of vessels in floating production storage and offloading are converted, new-build, and redeployed. A converted vessel refers to a ship or marine vessel that has been repurposed or modified from its original design and function to serve a different purpose or industry. It was self-propelled and towed. It illuminated diverse designs, such as spread mooring FPSO vessels, single point mooring FPSO vessels, and dynamic positioning FPSO vessels. These are operated by small independent, large independent, leased operator, and major national oil companies, for several applications, including shallow water, deep water, and ultra-deep water.
The global floating production storage and offloading market is segmented -
1) By Vessel Type: Converted, New-Build, Redeployed
2) By Propulsion Type: Self-Propelled, Towed
3) By Design: Spread Mooring FPSO Vessels, Single Point Mooring FPSO Vessels, Dynamic Positioning FPSO Vessels
4) By Operator: Small Independent, Large Independent, Leased Operator, Major National Oil Companies
5) By Application: Shallow Water, Deepwater, Ultra-Deep Water
The global floating production storage and offloading market size is expected to grow from $18.29 billion in 2022 to $19.89 billion in 2023 at a compound annual growth rate (CAGR) of 8.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The size of floating production storage and offloading market is expected to reach $26.67 billion in 2027 at a CAGR of 7.6%.
The rising demand for offshore exploration and production activities is expected to propel the growth of the floating production storage and offloading market going forward. Offshore exploration and production activities refer to the processes involved in discovering, extracting, and producing oil and gas reserves located beneath the seabed in offshore areas. Floating production storage and offloading (FPSO) units are commonly used in offshore exploration and production activities for their versatility, cost-effectiveness in exploration, field development, production, and operational flexibility. For instance, in May 2023, according to reports shared by the US Energy Information Administration, a US-based government agency, the US crude oil production increased from 11.89 million b/d in 2022 to 12.53 million b/d in 2023. Furthermore, in January 2022, according to OGV Energy, a UK-based engagement platform for the energy sector, offshore drilling is anticipated to increase by about 10% annually to reach almost 2,500 offshore wells in 2021, up from just over 2,300 in 2020. Therefore, the rising demand for offshore exploration and production activities is driving the growth of the floating production storage and offloading market.
Major players in the floating production storage and offloading market are Exxon Mobil Corporation, Shell plc., TotalEnergies SE, Eni S.p.A, China National Offshore Oil Corporation, Petróleo Brasileiro S.A., ConocoPhillips Company, Repsol S.A., Chevron Corporation, Woodside Energy Group Ltd, INPEX Corporation, Hess Corporation, Saipem S.p.A, HD Hyundai Heavy Industries Co. Ltd., TechnipFMC plc, Harbour Energy PLC, SBM Offshore N.V., Samsung Heavy Industries (SHI), Hanwha Ocean Co. Ltd., MISC Berhad, MODEC Inc., BP Plc., Bluewater Energy Services B.V., Teekay Corporation, Sembcorp Marine Ltd, Bumi Armada Berhad, BW Offshore Limited, DOF Subsea AS, PetroVietnam Technical Services Corporation (PTSC), and Keppel Offshore & Marine.
Technological advancements are key trends gaining popularity in the floating production storage and offloading market. Major companies operating in the floating production storage and offloading market are developing innovative technologies to sustain their position in the market. For instance, in February 2022, Marine Technical Limits (MTL), a UK-based structural FPSO integrity management services company, introduced its PYXIS Lightship technology on a digital platform. This innovative solution is designed to assist ship owners and operators of floating production storage and offloading (FPSOs) and fixed assets in effectively managing the lightship weight of their vessels. The PYXIS Lightship technology offers advanced capabilities for accurately monitoring and controlling the lightship weight of vessels. It utilizes innovative sensors and data analytics to provide real-time information on the weight distribution and changes within the vessel. Additionally, it uses a cloud-based platform to collect and store data from various sources, including inspection reports, tank gauge data, and weather forecasts. Moreover, it improves the safety of vessels by ensuring that they are appropriately ballasted and reduces the risk of accidents by identifying potential problems with lightship weight.
In September 2022, KOTUG International B.V., a Netherlands-based maritime service provider, acquired Seaways International for an undisclosed amount. Through this acquisition, KOTUG International B.V. aims to gain a broader geographic reach, access to new markets, and the expertise to compete in the growing floating production storage and offloading (FPSO) market. Seaways International is a UAE-based company that operates offshore support vessels and provides marine services to the global energy industry, including floating production storage and offloading.
North America was the largest region in the floating production storage and offloading market in 2022. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in floating production storage and offloading report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the floating production storage and offloading market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The floating production storage and offloading market consists of revenues earned by entities by providing floating production storage and offloading services such as oil and gas processing, operations and maintenance, supply chain management, maintenance and asset integrity, and offloading services. The market value includes the value of related goods sold by the service provider or included within the service offering. The floating production storage and offloading market also includes sales of storage tanks, mooring systems, offloading systems, control and safety systems, power generation systems, and subsea equipment which are used to provide floating production storage and offloading services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The floating production storage and offloading market research report is one of a series of new reports from The Business Research Company that provides floating production storage and offloading market statistics, including floating production storage and offloading industry global market size, regional shares, competitors with a floating production storage and offloading market share, detailed floating production storage and offloading market segments, floating production storage and offloading market trends and opportunities, and any further data you may need to thrive in the floating production storage and offloading industry. This floating production storage and offloading market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.