Use of floating production systems up 38%

There are now 88 floating production systems (FPSs) in use worldwide-an increase of 38% from the number operating only 18 months ago.

This is the conclusion of a report by International Maritime Associates Inc. (IMA), Washington, D.C.

"Radical changes have been taking place in the offshore sector that have reduced the cost of finding and lifting oil by 40% since the early 1990s," said IMA. "Of particular importance is the growing role of floating production systems.

"These systems have proven to be a cost-effective way to access deepwater fields, open marginal fields to production, gain access to remote locations, minimize time to first oil, and reduce cost of field abandonment."

Growth

Of the 88 FPSs in operation today, about 60% are floating production, storage, and offloading vessels (FPSOs), 30% are production semisubmersibles, and 10% are tension leg platforms (TLPs) or production spars (see chart).

Since its last assessment of FPSs, operators have added 24 such units, says IMA. These include 17 FPSOs, 5 production semis, 1 TLP, and 1 production spar.

Fifty-three floating storage vessels (FSSs), without production capability, are now in use. This is an increase of six since IMA's September 1996 report.

"Investment in new floating production equipment has been flowing at a good clip," said IMA, "and the major offshore players have announced intentions to increase capital expenditures over the next 12-24 months, reflecting the long-term need to develop new sources of crude."

Further additions

Operators have placed orders for 35 more FPSs and four FSSs (two new vessels and two conversions).

The 35 production vessels include 20 FPSOs (11 new, 9 conversions), 8 production semis (3 new, 5 conversions), 3 large TLPs, 2 mini-TLPs, and 2 production spars. They are expected to cost a total of about $12 billion.

"Based on publicized information," said IMA, "about 145 floating production systems are currently being planned or are under study. Some of these are in the advanced design stage; some are at an early stage of consideration. Not all will materialize, and, in some cases, another production solution will be selected."

Of the 145 under consideration or development, many are earmarked for use in hot areas such as Northwest Europe, the Gulf of Mexico, Western Australia, and Brazil (see chart).

IMA expects up to 70 more FSSs to be ordered by 2003, at a cost of $16-20 billion.