FPSO Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Floating Production Storage and Offloading (FPSO) Market Size & Share and It is Segmented by Construction (Contractor-Owned and Operator-Owned), Water Depth (Shallow Water, Deep Water, and Ultra-Deep Water), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The Report Offers the Market Size and Forecasts for FPSO Market in Revenue (USD) for all the Above Segments.

FPSO Market Size

FPSO Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 12.04 Billion
Market Size (2029) USD 18.11 Billion
CAGR (2024 - 2029) 8.50 %
Fastest Growing Market South America
Largest Market South America

Major Players

FPSO Market Major Players

*Disclaimer: Major Players sorted in no particular order


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FPSO Market Analysis

The FPSO Market size is estimated at USD 12.04 billion in 2024, and is expected to reach USD 18.11 billion by 2029, growing at a CAGR of 8.5% during the forecast period (2024-2029).

  • Over the medium term, the increasing exploration and production activities in deep and ultradeep water depths are expected to drive the FPSO market during the forecasted period.
  • On the other hand, the high upfront cost is expected to hinder the market's growth during the forecasted period.
  • Nevertheless, the technological advancements and innovation in FPSO systems are expected to create huge opportunities for the FPSO market.
  • South America is expected to be a dominant region for the FPSO market due to the increasing offshore activities in the region.

FPSO Market Trends

Contractor-owned FPSO Expected to Dominate the Market

  • There are three primary methods for procuring FPSOs: new build, conversion of an existing vessel, and redeployment of an existing unit. Among these options, redeployment poses several challenges due to the highly customized nature of the FPSO for a specific field. As a result, operators have predominantly favored the new build and conversion approaches, often relying on third-party contractors with specialized expertise for these services over the past two decades.
  • Contractor-owned FPSOs offer cost advantages over operator-owned FPSOs or fixed platforms. Contractors, who specialize in designing, constructing, and operating FPSOs, can achieve economies of scale and optimize their fleet utilization, resulting in reduced operator costs. This makes contractor-owned FPSOs an attractive option for operators seeking cost-effective solutions.
  • Contractor-owned FPSOs are typically available for lease, providing operators greater flexibility in field development. Leasing allows operators to access and deploy FPSOs with minimal upfront capital investments, benefiting smaller operators or projects with uncertain production profiles.
  • With the increasing offshore activities, the cost of exploration and production activities and outsourcing the FPSO-related activities to contractors. This allows operators to allocate their resources and attention to areas where they can create the most value, leaving the FPSO operations to specialized contractors.
  • For instance, according to Baker Hughes Rig Count, at the end of 2022, there were around 231 offshore rigs, the offshore rigs witnessed about 14.9% campared to previous year, signifying an increase in offshore exploration and production activities, consequently driving the demand for FPSOs.
  • In May 2023, MODEC, a Japanese FPSO supplier, secured a contract from Equinor to supply an FPSO vessel for the BM-C-33 block in the Campos Basin offshore Brazil. In addition to delivering the FPSO, expected to be completed by 2027, MODEC will provide Equinor with operations and maintenance services for the first year of the FPSO's oil production. Subsequently, Equinor plans to take over the operational responsibilities of the FPSO.
  • Therefore as per the points mentioned above, the Contractor-owned FPSO is expected to dominate the market during the forecasted period.
FPSO Market: Number of Rigs, in Units, Global, Jan 2022 - May 2023

South America Expected to Dominate Market

  • The South American region is anticipated to exert the highest influence on the global FPSO market. Particularly, Brazil and Guyana have emerged as key players in this market, experiencing a significant surge in demand for FPSOs in recent years.
  • South America has significant offshore oil and gas reserves, particularly in Brazil and Guyana. These reserves are located in deepwater and ultra-deepwater areas, requiring FPSOs for efficient production, storage, and offloading. The potential for large-scale discoveries and production in these regions drives the demand for FPSOs.
  • For instance, in November 2022, Diamond Offshore secured a drilling program contract from Petrobras in Brazil for its ultra-deepwater semi-submersible rig, Ocean Courage. The contract spans four years, with an unpriced option to extend for another four years. The firm term of the contract is estimated to be valued at around USD 429 million, which includes a mobilization fee and provision of services.
  • Moreover, South America has extensive pre-salt reserves, especially in Brazil's Santos and Campos Basins. These reserves are located beneath thick layers of salt, presenting technical challenges for exploration and production. FPSOs are well-suited for these challenging environments, as they can safely operate in deepwater and handle the complex processing requirements of pre-salt fields.
  • Therefore, as per the above points, the South American region is expected to dominate the FPSO market during the forecasted period.
FPSO Market - Growth Rate by Region

FPSO Industry Overview

The FPSO market is semi-consolidated. Some of the major players in the market (in no particular order) include Petroleo Brasileiro SA (Petrobras), CNOOC Ltd, TotalEnergies SE, Exxon Mobil Corp., and Shell PLC.

FPSO Market Leaders

  1. CNOOC Ltd.

  2. Petroleo Brasileiro SA (Petrobras)

  3. Shell Plc.

  4. Exxon Mobil Corp

  5. TotalEnergies SE

*Disclaimer: Major Players sorted in no particular order

FPSO Market Concentration
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FPSO Market News

  • May 2023: SBM Offshore and Esso Exploration & Production Guyana entered a 10-year Operations and Maintenance Enabling Agreement. The agreement entails SBM Offshore being responsible for the operations and maintenance of four FPSOs: Liza Destiny, Liza Unity, Prosperity, and ONE GUYANA.
  • April 2023: Following a major upgrade to enable gas production, Shell resumed operations at the Pierce field in the United Kingdom Central North Sea. The Haewene Brim floating production, storage, and offloading vessel (FPSO), utilized for hydrocarbon production at the Pierce field, underwent significant modifications. A new subsea gas export line was installed, connecting to the SEGAL pipeline system, which transports gas to the St Fergus facility north of Aberdeen. This development allows for the extraction of gas from the Pierce field, which had previously been focused solely on oil production.
  • April 2023: KBR, headquartered in Houston, has officially announced the unexpected acquisition of an engineering contract for Equinor's Bay du Nord project, valued at USD 9.4 billion and located in the offshore eastern region of Canada. The awarded contract encompasses the possibility of providing detailed design and procurement management services until the completion of the FPSO (Floating Production, Storage, and Offloading) unit.

FPSO Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD, till 2028

    3. 4.3 FPSOs in Operation, by Region and Operator, 2022

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

        1. Increasing Offshore Oil and Gas Exploration and Production Activities

        2. Growing Demand for Energy

      2. 4.6.2 Restraints

        1. High Upfront Costs

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitute Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry


    1. 5.1 Ownership

      1. 5.1.1 Operator-owned

      2. 5.1.2 Contractor-owned

    2. 5.2 Water Depth

      1. 5.2.1 Shallow Water

      2. 5.2.2 Deep Water

      3. 5.2.3 Ultra-deep Water

    3. 5.3 Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Norway

        2. United Kingdom

        3. Russia

        4. Netherland

        5. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. India

        3. Australia

        4. Indonesia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Venezuela

        4. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. United Arab Emirates

        3. Nigeria

        4. Algeria

        5. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 FPSO Contractors

        1. Modec Inc.

        2. SBM Offshore NV

        3. BW Offshore Limited

        4. Teekay Offshore Partners LP

        5. Bluewater Holding BV

        6. Saipem SpA

        7. Petrofac Limited

      2. 6.3.2 FPSO Operators

        1. Petroleo Brasileiro SA (Petrobras)

        2. CNOOC Ltd

        3. TotalEnergies SE

        4. ExxonMobil Corp.

        5. Chevron Corporation

        6. Shell PLC

        7. BP PLC

    4. *List Not Exhaustive

    1. 7.1 Technological Advancements and Innovation

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FPSO Industry Segmentation

FPSO stands for Floating Production, Storage, and Offloading. It is a type of offshore vessel used in the oil and gas industry for producing, processing, storing, and offloading hydrocarbons. FPSOs are typically deployed in offshore fields where it is not feasible or economically viable to build fixed production platforms.

The FPSO market is segmented by Construction, water depth, and geography. By Construction, the market is segmented into Contractor-owned and Operator-owned. By Water Depth, the market is segmented into Shallow Water, Deep Water, and Ultra-deep Water. The report also covers the market size and forecasts for the FPSO market across major regions. The report offers the market size and forecasts for the FPSO market in revenue (USD) for all the above segments.

Water Depth
Shallow Water
Deep Water
Ultra-deep Water
Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Rest of Middle-East and Africa
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FPSO Market Research FAQs

The FPSO Market size is expected to reach USD 12.04 billion in 2024 and grow at a CAGR of 8.5% to reach USD 18.11 billion by 2029.

In 2024, the FPSO Market size is expected to reach USD 12.04 billion.

CNOOC Ltd., Petroleo Brasileiro SA (Petrobras), Shell Plc., Exxon Mobil Corp and TotalEnergies SE are the major companies operating in the FPSO Market.

South America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the South America accounts for the largest market share in FPSO Market.

FPSO Industry Report

Statistics for the 2024 FPSO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. FPSO analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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FPSO Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)