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    Daewoo "bullish" about FPU sector

    Yard News // November 26, 2004
    Fairplay ( reports that Daewoo Shipbuilding is feeling "bullish" about floating production unit market.

    Fairplay quoted the shipbuilder saying that the increase in world energy consumption combined with an uncertain oil supply will push oil prices to a high level.

    "As a result the FPU sector will expand steadily and there will be an increased demand on floaters, mainly from deep sea development. Daewoo believes between 130 and 140 floating production units will be ordered in the period to 2008, most of which willbe FPSO newbuildings," said the Fairplay report.

    These will be deployed offshore West Africa, Brazil, Venezuela, Caspian Sea and Sakhalin. Among owners placing contracts are BHP, BP and Shell. Demand for natural gas is expected to double by 2020, pushing LNG ship size to 250,000m. The current level ofship prices is expected to continue as the orderbook is full for the next three years.

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