Facing short-term headwinds from the drop in oil prices and intense competition, Japanese floating production systems lessor MODEC said it will develop asset integrity to overcome the challenges.
The company, which has clinched seven FPSO projects since 2010, is banking on its experience in large-scale and deepwater projects.
In its mid-term business plan announced on 8 May, MODEC said, “We see the expansion of technically challenging projects, especially in the ultra-deepwater market in the long term. So there’re increasing needs for long-term stable production of oil and gas.”
The growing challenges of managing technically sophisticated projects are, thus, an opportunity.
MODEC said, “Asset integrity is to design and construct a facility which can produce oil and gas stably and efficiently in a long period as required by clients. It also involves maintaining the productivity and condition of the facility to provide expected services through operations and maintenance and asset management.”
MODEC said that it can execute asset integrity by capitalising on its in-house know-how gained through life-cycle experiences of facilities – front-end engineering and design (FEED); engineering, procurement, construction, and installation (EPCI); operations and maintenance (O&M); and asset management.
Overall, MODEC is optimistic of an upturn in the longer term.
MODEC said, “Energy demand will increase due to growth in global population and economy of emerging countries. Oil prices will rise gradually and in field development, the number of projects will increase, especially in ultra-deepwater, and field life will get longer.”