Redeployable FPSOs: what is the status of all the idle floaters?

Demand for the redeployment of existing floating production, storage and offloading vessels is high, but the fleet of available FPSOs has remained unchanged, highlighting the complex requirements of redeployments.

According to Upstream's estimates, there are six viable FPSOs parked up mostly in Asia that are available for new assignments.

These are the Dhirubhai-1, Nganhurra, Glas Dowr, Munin, Lakams Ha (formerly Armada Claire) and Piranema Spirit.

This year, only one existing floater has been assigned to a new project; that being the OSX-1 for Repsol's Block 29 (Polok and Chinwol) project in Mexico where BW Offshore is poised to be the main contractor.

As for the remaining six, the Dhirubhai-1 was previously linked with the Pecan project in Ghana, but that project is on hold and there are no market whispers about the FPSO's alternatives.

The Nganhurra FPSO was previously on Woodside’s Enfield project in Australia, and is linked to various opportunities in Asia Pacific.

These include the Santos Dorado project in Australia and the ConocoPhillips Patawali project in Malaysia. Market sources told Upstream the Nganhurra has been inspected by a number of FPSO contractors interested in a potential purchase.

The Lakam Ha, formerly the Armada Claire, is an interesting case. The FPSO has been at the Seatrium yard in Singapore for repairs and upgrades for some time.

Sources said work on the hull in terms of steel renewal has been completed, but the topsides have yet to be customised despite rumours swirling for months that a contract in Mexico will be formalised in the fourth quarter.

Meanwhile, the Glas Dowr and the Munin floaters have been laid up for some years in Southeast Asia waiting on new contracts.

In its quarterly results call last week, Bluewater reiterated that both FPSOs are available for redeployment, and that discussion with various clients are ongoing.

Bluewater is hoping to progress to front-end engineering and design with one client in Asia for the Glas Dowr. The company was not able to be more specific, and said it was certainly recognising opportunities in the region.

Finally, the Piranema Spirit, which is a cylindrical FPSO owned by Altera Infrastructure and moored in Brazil, is available for redeployment.

Are there more FPSOs coming into the redeploy fleet?

In addition to the six FPSOs already mentioned, there are two floaters in the UK that had been earmarked for new UK North Sea assignments.

The Excalibur FPSO (formerly the Sevan Hummingbird) had been allocated to Ping Petroleum's Avalon project, and the Western Isles FPSO for Neo Energy's Buchan redevelopment.

However, the investment brakes have been applied on both projects due to the UK government's suffocating proposals on fiscal and regulatory change, so the fate of the FPSOs is uncertain.

Mystery also surrounds the Svetah Venetia FPSO — previously the Petrojarl Varg — which was supposed to have been relocated to India's PY-3 field by now.

There is also the remote chance that two of Modec’s old FPSOs — MV18 and MV20 — will be available for redeployment as they are coming off contract this year with Petrobras in Brazil.

The complex nature of redeployments

FPSO redeployments have been a regular occurrence for many years, but they are complicated, market experts tell Upstream.

There are multiple challenges including the hull suitability, the turret mooring system, the onboard processing equipment and other unknowns.

“The reason a number of FPSOs are not relocated or redeployed is that they are not an easy fit for a proposed field,” one industry expert said.

“Refurbishments and relocations are more complex than a blank paper newbuild or conversion. It can be fraught with risks.”