difficult to raise finance for floating production storage and
offloading vessels (FPSOs), despite demand for the vessels
remaining strong.
High oil prices are driving the demand by oil companies to
develop offshore fields using FPSOs, sourcing the vessels from the
tanker market and leasing contractors.
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“The FPSO market has seen quite a significant number of orders
this year – so far we have seen 22 FPSO awards, some for turnkey
new buildings and more for leasing contracts,” said Kjetil Garstad,
an analyst with Norway’s Arctic Securities.
Analysts expect more contract awards before the end of 2008 and
another good year in 2009 for FPSO owners, although they expect
smaller contractors to find it more difficult to secure funding,
due to the global economic conditions.
“Demand is set to continue, but an issue might be the problem of
funding for smaller players. On the supply side, smaller FPSO
owners will have difficulties in obtaining finance for current
projects or for re-financing debt,” Garstad added.
In offshore Europe, analysts have identified more than 25
potential oil and gas projects which may require the services of an
FPSO in 2009.
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