After experiencing a bleak situation in 2016, the floating production unit market finally recovered in 2017, as oil prices rebounded, cost deflation and standardization increased; By the end of 2020, orders for Floating Production Storage and Unloading Vessels (FPSOs) and Floating Liquefied Natural Gas Installations (FLNG) are expected to increase significantly, with a total potential order value of $25 billion. Brazil and West Africa will continue to be key markets.    
Clarkson predicted in a recent report that by the end of 2020, there will be 33 new orders for FPSO and FLNG, of which 6 will be ordered within this year, 13 will be ordered in 2019, and 14 will be ordered in 2020; In addition, there may be new orders for 5 semi submersible production units and 6 self elevating production units.     
According to Clarkson's data, in 33 new orders before the end of 2020, FPSO accounted for 76% and FLNG accounted for 24%. In terms of the total potential contract value of $25 billion, FPSO accounted for 56% and FLNG accounted for 44%. Latin America (mainly Brazil) will have 10 new orders, while West Africa will have 8 new orders.
According to Clarkson's report, after new orders fell to zero in 2016, the floating production device market rebounded last year, with a total of eight new orders last year, with a total value of approximately $6.5 billion. Most of the FPSO contracts signed in the past 18 months are projects that have been delayed since the beginning of the depression in the offshore market.
So far this year, the number of orders for floating units has reached 5, with Chinese shipyards participating in all orders. Among them, COOEC and Flour have received the FPSO contract for Shell's Penguins development project off the UK coast. The Mero-1 FPSO contract was awarded to Japan's Mitsui Offshore Development Company (MODEC) and its partners. COOEC has also become the general contractor of Offshore Oil 119 FPSO used by CNOOC for the development of Liuhua 16-2 oilfield in the South China Sea.
In addition, Energean of Greece awarded the FPSO contract for the Karish natural gas field development project in Israel to Sembcorp Marine of Singapore, while Sembcorp Marine subcontracted the FPSO hull construction work to COSCO Marine Heavy Industries. MODEC has obtained a modification contract for the FPSO "Carioca" in Brazil's Sepia oil field, converting a VLCC to an FPSO. The hull modification work is undertaken by Dalian COSCO Marine Heavy Industry, and the topside module is handed over to Keppel Offshore and Maritime.
Although the floating device market is growing, Clarkson still warns that there are potential threats to future contract growth, and fluctuations in oil prices, US shale gas exploration and development expenditures, project financing challenges, and uncertainty about the OPEC policy outlook will all be influencing factors in this market.