{"id":8029,"date":"2020-03-03T08:28:51","date_gmt":"2020-03-03T08:28:51","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=8029"},"modified":"2020-03-03T08:28:51","modified_gmt":"2020-03-03T08:28:51","slug":"coronavirus-to-delay-most-of-2020s-fpso-deliveries-and-postpone-usd30-billion-of-ep-investments","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/coronavirus-to-delay-most-of-2020s-fpso-deliveries-and-postpone-usd30-billion-of-ep-investments\/","title":{"rendered":"Coronavirus to delay most of 2020\u2019s FPSO deliveries and postpone USD30 billion of E&#038;P investments"},"content":{"rendered":"<p>Out of a global total of 28 floating production, storage and offloading (FPSO) vessels that are under construction, 22 are being built at shipyards in China, South Korea and Singapore.\u00a0<em>Rystad Energy<\/em>\u00a0expects the outbreak of the coronavirus disease known as COVID-19 to cause extensive staffing and supply shortages in these countries that will in turn delay project deliveries by at least three to six months.<\/p>\n<p>If the epidemic escalates, the delays could increase to nine or even 12 months, especially taking into account the restricted time windows for heavy transport, installation and hook-up. The average development time for an FPSO is 36 months, meaning that companies could face a 30% delay.<\/p>\n<p><em>&#8216;Although operators and contractors are looking into ways to make up for some of the time that will be lost by fast-tracking other stages of development, we anticipate first oil or gas for these projects will face clear delays,&#8217;\u00a0<\/em>says Rystad Energy Partner and Head of Oilfield Service Research Audun Martinsen.<\/p>\n<p>At present, 28 FPSOs are under development globally, 15 of which are being built in China. Seven are under construction in COVID-19 hotspot South Korea as well as in Singapore, while six additional vessels are being constructed elsewhere.<\/p>\n<p>Many Chinese workers received a holiday extension in early February after the Chinese New Year, aimed at limiting the spread of the coronavirus disease. However, even as workers return to the yards, Rystad Energy expects projects may still have to contend with 30% to 50% fewer work hours.<\/p>\n<p>Construction progress may also be slowed by supply delays, as the delivery of bulk materials, modules and equipment is hampered by transportation restrictions both within and outside of mainland China. The plant utilization rate in China\u2019s equipment manufacturing sector has now fallen to less than 10%.<\/p>\n<p>In addition, project management will face severe issues as travel bans restrict contractors, engineering firms, certification companies and E&amp;P officials from accessing shipyards. This became particularly apparent after news broke that the coronavirus had spread to the Lombardy region of Italy, the backyard of major contractor Saipem, forcing the company to ask thousands of workers to stay home until further notice.<\/p>\n<p>Experts do not yet know when the effects of the epidemic will ease, but one thing remains clear: the situation will worsen in March and the impact of the virus is not limited to Chinese fabrication yards \u2013 it affects the entire global service industry.<\/p>\n<p>As the virus has caused reduced industrial activity and travel restrictions in China and beyond, much of this year\u2019s global expected oil-demand growth will be lost.<\/p>\n<p>Oil prices have already dipped below the $50 per barrel threshold and could fall further if OPEC does not implement additional supply cuts. Lower oil prices will result in oil and gas companies scaling down their flexible investment budgets, especially shale operators in the US as well as some offshore exploration and production (E&amp;P) players.<\/p>\n<p><em>&#8216;Our current assessment forecasts that COVID-19 could result in global E&amp;P investments falling by around $30 billion in 2020 \u2013 a significant hit to the industry,&#8217;<\/em>\u00a0Martinsen concludes, adding that some of these investments are likely to come back in 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Out of a global total of 28 floating production, storage and offloading (FPSO) vessels that are under construction, 22 are being built at shipyards in China, South Korea and Singapore.\u00a0Rystad &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/coronavirus-to-delay-most-of-2020s-fpso-deliveries-and-postpone-usd30-billion-of-ep-investments\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":7992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[454,7318,7351,7353,918,1920,7352,7355,2375,7354],"class_list":["post-8029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-china","tag-coronavirus","tag-covid-19","tag-floating-production","tag-fpso","tag-opec","tag-rystad-energy","tag-singapore","tag-south-korea","tag-storage-and-offloading","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Coral-Sul-Hull-Launch-2.jpg?fit=874%2C874&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-25v","jetpack-related-posts":[{"id":8551,"url":"https:\/\/www.oilnewskenya.com\/index.php\/fpso-awards-are-set-to-recover-to-seven-vessels-next-year\/","url_meta":{"origin":8029,"position":0},"title":"FPSO Awards Are Set To Recover To Seven Vessels Next Year","author":"","date":"July 9, 2020","format":false,"excerpt":"Hit by the second industry downturn in five years, global awards for floating production, storage and offloading (FPSO) vessels will likely be limited to a single unit in 2020, Rystad Energy believes, as exploration and production firms slash budgets and activity. Similar to the previous downturn, awards are set to\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Coral-Sul-Hull-Launch-2.jpg?fit=874%2C874&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Coral-Sul-Hull-Launch-2.jpg?fit=874%2C874&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Coral-Sul-Hull-Launch-2.jpg?fit=874%2C874&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/Coral-Sul-Hull-Launch-2.jpg?fit=874%2C874&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14848,"url":"https:\/\/www.oilnewskenya.com\/index.php\/angola-liebherr-to-build-dual-offshore-cranes-for-azules-agogo-fpso\/","url_meta":{"origin":8029,"position":1},"title":"ANGOLA: Liebherr to Build Dual Offshore Cranes for Azule&#8217;s Agogo FPSO","author":"","date":"April 8, 2025","format":false,"excerpt":"Liebherr has successfully sold two offshore cranes of the type RL 2600 (Ram Luffing 2600) and RL-K 2600 (Ram Luffing knuckle boom 2600) to Yinson Production, a global energy and technology company based in Singapore The cranes will support the Agogo FPSO (Floating Production Storage and Offloading Unit), which will\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/04\/liebherr-rl2600-rl-k2600-offshore-3-96dpi_w800.jpg?fit=800%2C533&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/04\/liebherr-rl2600-rl-k2600-offshore-3-96dpi_w800.jpg?fit=800%2C533&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/04\/liebherr-rl2600-rl-k2600-offshore-3-96dpi_w800.jpg?fit=800%2C533&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/04\/liebherr-rl2600-rl-k2600-offshore-3-96dpi_w800.jpg?fit=800%2C533&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":15036,"url":"https:\/\/www.oilnewskenya.com\/index.php\/angola-anpg-azule-energy-partners-of-block-15-06-celebrate-arrival-of-fpso-agogo\/","url_meta":{"origin":8029,"position":2},"title":"ANGOLA: ANPG, Azule Energy &amp; Partners of Block 15\/06 Celebrate Arrival of FPSO Agogo","author":"","date":"May 19, 2025","format":false,"excerpt":"The National Oil, Gas and Biofuels Agency (ANPG), Azule Energy and the partners of Block 15\/06, namely Sonangol Exploration and Production and Sinopec, celebrate the arrival, today, of the floating production, storage and offloading vessel (FPSO) Agogo in Angolan waters, with operations scheduled to begin in the second half of\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/05\/fpso-agogo-2.jpg?fit=700%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/05\/fpso-agogo-2.jpg?fit=700%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/05\/fpso-agogo-2.jpg?fit=700%2C400&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/05\/fpso-agogo-2.jpg?fit=700%2C400&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13179,"url":"https:\/\/www.oilnewskenya.com\/index.php\/mauritania-greater-tortue-ahmeyim-project-fpso-vessel-successfully-sets-sail-for-site\/","url_meta":{"origin":8029,"position":3},"title":"MAURITANIA: Greater Tortue Ahmeyim Project FPSO Vessel  Successfully Sets Sail for Site","author":"","date":"January 23, 2023","format":false,"excerpt":"The floating production, storage and offloading (FPSO) vessel for the bp-operated Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project has started its journey towards the project site off the coasts of Mauritania and Senegal. The FPSO set sail on 20 January 2023 from Qidong, China after successfully completing a\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/01\/GTA-FPSO.jpg?fit=750%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/01\/GTA-FPSO.jpg?fit=750%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/01\/GTA-FPSO.jpg?fit=750%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/01\/GTA-FPSO.jpg?fit=750%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14679,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cote-divoire-vaalco-energy-announces-significant-milestone-in-its-fpso-dry-dock-refurbishment-project\/","url_meta":{"origin":8029,"position":4},"title":"COTE D\u2019IVOIRE: VAALCO Energy Announces Significant Milestone in Its  FPSO Dry Dock Refurbishment Project","author":"","date":"February 4, 2025","format":false,"excerpt":"VAALCO Energy has announced a significant milestone in its C\u00f4te d\u2019Ivoire Floating Production Storage and Offloading vessel (FPSO) Dry Dock Refurbishment Project. In alignment with the project timeline, the FPSO\u00a0Baobab Ivoirien MV10, operated by Canadian Natural Resources International (CNRI), ceased hydrocarbon production as scheduled on January 31, 2025. The final\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/02\/FPSO-Baobab-Ivoirien-MV10.jpg?fit=800%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/02\/FPSO-Baobab-Ivoirien-MV10.jpg?fit=800%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/02\/FPSO-Baobab-Ivoirien-MV10.jpg?fit=800%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/02\/FPSO-Baobab-Ivoirien-MV10.jpg?fit=800%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14438,"url":"https:\/\/www.oilnewskenya.com\/index.php\/ivory-coast-fpso-petrojarl-kong-and-fso-yamoussoukro-ready-to-leave-for-phase-2-of-baleine-project\/","url_meta":{"origin":8029,"position":5},"title":"IVORY COAST: FPSO Petrojarl Kong and FSO Yamoussoukro ready to leave for Phase 2 of Baleine project","author":"","date":"July 25, 2024","format":false,"excerpt":"\u00a0Eni announces that the naming ceremony of the Floating Production, Storage and Offloading Unit (FPSO) Petrojarl Kong and the Floating Storage and Offloading Unit (FSO) Yamoussoukro was held today in Dubai. The two vessels will significantly increase production from the Baleine field, located offshore C\u00f4te d'Ivoire, the largest discovery ever\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/07\/Baleine.png?fit=800%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/07\/Baleine.png?fit=800%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/07\/Baleine.png?fit=800%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/07\/Baleine.png?fit=800%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=8029"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8029\/revisions"}],"predecessor-version":[{"id":8030,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8029\/revisions\/8030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/7992"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=8029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=8029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=8029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}