FPSO Market Analysis

The converted segment is anticipated to cross over USD 3 billion by 2034. The market for Floating Production Storage and Offloading (FPSO) vessels is experiencing growth due to the advantages of vessel conversion. This approach offers reduced capital costs, faster deployment, and greater operational flexibility compared to new builds. The availability of retired FPSOs and oil tankers further supports this trend. Converted FPSOs typically require only one-third of the capital investment needed for a new vessel with similar capabilities, making them an attractive option for operators in the offshore oil and gas industry.

The ultra deep segment is anticipated to witness a CAGR of over 7% through 2034. The proximity to onshore support facilities and the ease of transferring processed hydrocarbons are propelling the product adoption. Paradigm shift towards ultra-deep exploration activities coupled with advancements in seismic and drilling technologies, as well as the presence of larger oil reserves in deeper basins will complement the industry landscape.

Brazil FPSO market is likely to exceed over USD 2.5 billion by 2034. The discovery of vast oil reserves coupled with favorable government policies and increasing investments toward oil & gas exploration, is set to boost the industry landscape. Stringent mandates toward emission reduction targets and the growing importance of diversifying energy supplies, is complementing the business outlook.

For instance, in May 2024, MODEC in association with JGC Corporation reported to finish its projected to evaluate & quantify GHG and methane emissions from two FPSOs deployed in offshore Brazil. The project included a measurement of the amount of GHG constituents including hydrofluorocarbons, nitrous oxide, and methane, from active vessels in line with the framework recognized by the international methane emission reduction initiative called Oil & Gas Methane Partnership 2.0 (OGMP 2.0).