KUALA LUMPUR (Jan 10): The market for floating production, storage and offloading (FPSO) units is likely to continue apace with 10 new awards expected in 2022.

According to Norway-based independent energy research and business intelligence company Rystad Energy, two lease contracts were awarded in the fourth quarter of 2021, bringing the total for the year to 10 — up from just three in 2020 — a strong rebound for the FPSO market.

In a report last week, the firm said demand for FPSO units in Brazil was a significant contributing factor that drove 2021 growth, with seven of last year’s 10 contract awards being Brazilian projects.

It said the South American nation is expected to continue driving global awards in 2022, with an additional three FPSO awards expected.

Rystad said not only is Brazil delivering more awards, but the Brazilian projects are expected to be the largest in terms of production capability.

It said for instance, the unit bound for P-80 will become the ninth in the Buzios area. It will have an oil processing capacity of around 225,000 barrels per day and a gas processing capacity of about 12 million cubic metres per day, which is the same size as the FPSO Almirante Tamandare awarded in early 2021.

Rystad senior analyst Zhenying Wu said with around 30 FPSO units under construction or queued up for construction, and another 10 expected to be awarded over the next 12 months, the market is set to build on its recent success.

“However, as witnessed in many other facets of the global economy in recent months, supply chain concerns linger and will test the market’s ability to take in new contracts without uncontrollable cost overruns and delays,” Wu warned.

Rystad said the FPSO market saw a strong finish to 2021, with two lease-and-operate contracts, two front-end engineering and design contracts, and one contract extension awarded in the fourth quarter.

It said that in Brazil, Yinson Holdings Bhd had been awarded two letters of intent (LOIs) from Petrobras to supply Integrado Parque das Baleias FPSO and for operation and maintenance services under a lease-and-operate agreement lasting 22 years and six months from the day of final acceptance. The FPSO will be deployed at the Jubarte field in the North Campos basin and is scheduled to start production in late 2024.

Meanwhile, Enauta Energia issued Yinson another LOI to provide, operate and maintain an FPSO at the Atlanta field in the Santos basin in Brazil.