According to a new World Energy Report, published by the International Maritime Associates, a record number of floating production system awards is expected over the next 18 months.

　　The report stated that around 30 production floater contracts were queued up for award over the next 18 months, assuming no major market disruption occurs, and the supply chain can absorb the orders within this time frame.

　　The market surge is being driven by crude prices that have climbed to the mid-$80s on fast rebounding oil demand growth, supply constraints by OPEC+, and inadequate investment by upstream players to replace production.

　　“The deepwater production market has turned red hot. The queue of near-term project starts has grown each month since Q1. We now see 25 FSPO and 5 FPU contracts lined up for award by early 2023,” Jim McCaul, Managing Director of IMA/WER said.

　　“The principal constraint on near-term production floater orders is not market demand – it’s the ability of the supply chain to absorb 30 new contracts over the next 18 months without costs and delays exploding,” McCaul added.

　　IMA/WER’s floating production report has up-to-date details and contracting status for more than 200 floater projects in the planning stage. Around 55 percent of these envisage the use of an FPSO.