Ongoing oil recovery pursuits in South America, notably in Guyana and Brazil, are key factors influencing the increased production of Floating, Production Storage and Offloading (FPSO) units, vessels used by the offshore oil & gas industry for the production and processing of hydrocarbons and for the storage of oil until it can be transferred to a tanker. Brazil and Guyana have been instrumental in the recent growth of the FPSO industry with up to ten new vessels expected to be on order this year and others lined up for production in the near future, according to industry reports.
The market for FPSO units has now almost brushed off the effects of the COVID-19 pandemic in 2021 and is likely to continue apace in 2022, according to a report by the Oslo-based 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.
