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    New version of floating production report published

    Publications // June 24, 2002
    Douglas Westwood in the UK reports that the new second edition of The World Floating Production Report has been re-written to cover the period 2002-2006. It uses a specially developedmarket model to forecast capital expenditure over the period and segment by type of floating system and region.

    The report describes the technology used in developments and analyses field development projects under consideration for the period to 2006, overview of the growing floating production segment of the offshore industry and the values world markets.

    Over the past five years capital expenditure on floating production systems has totaled some $20 billion, but over the next five years this is forecast to increase by more than 50 per cent to $32 billion. Annual spend is expected to soar to over $9 billion in 2004.

    The Report forecasts that West Africa will get the lion's share of future investment in floaters, with investments of some $11 billion destined for the region. This is nearly twice that of other major regions with the Gulf of Mexico at $6.1 billion, Brazil at $5.1 billion and Asia Pacific at $4.7 billion.

    In total, some 134 floaters are expected to be installed over the period 2002-2006. The largest number, 91, are expected to be FPSOs, 14 are floating production semi-submersibles, 14 SPARs and 15 TLPs.

    Expenditure on FPSOs is expected to total nearly $21 billion of the $32 billion total, the remainderbeing divided fairly equally amongst FPSSs, SPARs and TLPs.

    204 floating production systems have been deployed worldwide to date and 108 are FPSOs. Of these, 74 are currently operational with another five under construction, seven in conversion and firm plans for a further 12.

    The study notes the change in geographic segmentation over the years, in particular the decline of the European market and the rise of West African market.

    The Report forecasts the future mix of FPSOs, expecting at least 24 newbuilds, plus 35 conversions and 32 upgrades. However, a combination of high oil prices and a shortage of tanker hulls could increase the share of newbuilds.

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