FPSO Investments Surge Despite Geopolitical Uncertainty

FPSO investments have increased by 50% in 2023, with significant growth expected to continue, driven largely by projects in South America.

The FPSO sector is focusing on integrating new technologies ...

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As conflicts in the region intensify, it has become increasingly difficult for suppliers and buyers across the oil and gas supply chain to plan effectively for 2025.

Although there may be near-term challenges in the world of project sanctioning and contract awards, the floating production, storage and offloading (FPSO) sector is undergoing a significant transformation to secure a position front and center in the future of offshore oil and gas production.

The FPSO market witnessed a 50% increase in investments ­— ­­from $6 billion to $9 billion — related to greenfield surface capital expenditure during 2023, momentum that is expected to continue into 2024.

This growth is largely concentrated in South America, particularly in Guyana and Brazil’s pre-salt fields, regions that are seeing some of the largest FPSO projects due to the significant oil reserves in their deepwater offshore fields.

Several new FPSO contracts have been awarded and many vessels are now under construction.