Insight

The impact of capex cuts on the global FPSO market

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Report summary

The pipeline of projects requiring floating production storage offloading units (FPSOs) is robust, but achieving cost deflation has been challenging, particularly for new-build FPSOs. The key shipyards with the capabilities to build bespoke FPSOs are struggling with very low profit margins and there is limited scope for tangible cost savings. Additional measures are desperately needed to achieve reasonable cost deflation. 

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    The impact of capex cuts on the FPSO market.pdf

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