Offshore market activity
Activity in both the shuttle tanker and floating production markets has been brisk during 2011. Orders were placed for 15 new shuttle tankers, predominantly to serve the growing Brazilian market but also to satisfy North Sea demand. In the FPSO sector, 16 new contracts were awarded during 2011 comprising a range of newbuildings, converted vessels and redeployed units in Brazil, the North Sea, West Africa, South East Asia and Australia.

Demand for offshore solutions
According to International Maritime Associates (IMA) between 100 and 140 new FPSO orders will need to be placed over the next five years depending on the prevailing crude oil price. Many of these FPSO projects are also likely to require a shuttle tanker solution for crude oil transportation. Redeployed FPSOs are expected to provide approximately 20% of the required vessels with the remainder comprised of newbuildings and conversions. The IMA also forecasts a requirement for between 25 and 35 new FSO orders over the next five years.

Offshore projects planned or under study
According to IMA there are currently 132 projects in the planning state which could utilize a floating production, storage and offloading vessel (FPSO). Brazil has the most projects under study with 43 followed by West Africa (31), South East Asia (22), and North West Europe (15).