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FPSO Market: Surged Offshore Drilling Expeditions to Encourage Robust Prospects on the Back of Depleting Oil Reserves

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On the backdrop of massive oil and gas drilling activities owing to depleting reserves and mounting end-user needs backed by ubiquitous urbanization, Floating Production Storage Offloading (FPSO) applications are likely to remain sky-high. Besides optimum navigational expertise within unscalable ocean depths, FPSO system also exhibit promising weather resistance against unpredictable wind force and high tides, an insoluble problem in offshore drilling. Growing investments in deep and ultra-deep water exploration to elevate adoption of FPSO.

A potential advantage of FPSO is its mobility feature that enables easy transfer across locations with superlative user convenience. Need to drill reserves of varying size and capacity encourage adoption of FPSO to essentially enable drilling across smaller reserves with limited hydrocarbon. Backed by superlative market growth prospects, FPSO market is characterized by several market players with equally diverse product portfolio.

Browse the full FPSO Market Report:

FPSO Ideally Substitutes Fixed Production Platforms in Offshore Drilling Expeditions

Additionally, limited functional scope in the ambit of fixed production platforms, more emphatically across smaller reserves and remote settings are further poised to leverage adoption and incur growth in FPSO vessels equipment market. The optimistic outlook of offshore oil and gas exploration is also backed by favorable government initiatives for advanced off shore expeditions.

Despite lucrative prospects, the FPSO market is prey to prevalent limitations such as high capital investments. New constructions of competitive FPSO calls for large scale spending in areas such as testing, operation, and deployment. Growing costs of raw materials and labor charges in the light of high inflation are expected to significantly dip growth in the coming years in FPSO market.

Modec Bags Ambitious FPSO FEED Project in West Africa’s Senegal

Leading veterans are aiming to sustain market dominance by entering into long term contracts to offer competent FPSO offerings. In this light, Japan based Modec International Inc. has recently inked a long term contract with oil and gas company, Woodside Energy for SNE field development.

As part of the contract Model will be supplying FPSO vessels for Sengelese waters in the west coast of Africa. The company will meticulously oversee front end engineering design of FPSO, followed by subsequent charter, supply, and operations of FPSO vessels. These Modec developed FPSO vessels will be deployed around 800 meters under sea to produce approximately 100,000 barrels of crude oil. Considering lucrative opportunities for oil production in West Africa, such ambitious projects are expected to secure Modec’s lead amidst staggering competition in FPSO market.