FPSO Africa: The Rise of a Giant

The African continent is witnessing a remarkable increase in FPSO activity, with 43 projects already in operation and an additional 14 projects scheduled for development soon. This upward trend offers substantial prospects for fostering economic growth and strengthening the continent's energy security. The rapidly expanding FPSO landscape across Africa signals a pivotal moment with immense potential for driving economic development, enhancing energy independence, and advancing technological progress throughout the region. (1)

The Case for FPSO Africa

The high demand for FPSOs around Africa originates from several factors: natural resource distribution, infrastructure limitations, and strategic advantages specific to the continent. Many of Africa's most promising oil and gas reserves are located offshore, particularly in deepwater and ultra-deepwater environments off the coasts of countries like Nigeria, Angola, Ghana, and Mozambique. These areas make traditional fixed platforms and pipelines technically challenging and economically burdensome. FPSOs offer a practical solution here, as they can operate independently at sea without requiring fixed seabed infrastructure.

Another important driver is the limited development of onshore oil and gas infrastructure in many parts of Africa. In regions where pipelines, refineries, and export terminals are either underdeveloped or logistically complicated, FPSOs serve as floating facilities that handle everything from production to storage and offloading. This flexibility allows operators to fast-track production and export crude oil directly from the offshore site, bypassing extensive onshore development.

Economically, FPSOs are compelling because of their lower upfront costs than building fixed platforms and pipeline networks, especially for marginal or smaller fields. Additionally, FPSOs are scalable and deployable assets. Once a field reaches the end of its life, the FPSO can be relocated to a new field, providing a degree of operational and financial agility that permanent installations cannot offer.

There has also been a strong push from African governments to use FPSO projects to stimulate local industries. Countries like Nigeria, for example, have implemented local content laws that encourage the participation of local companies in FPSO construction, operation, and maintenance. This creates jobs, builds technical expertise, and boosts economic development in oil-producing regions.

The broader energy market dynamics also play a role. As global demand for oil remains significant, Africa continues to position itself as a major supplier. FPSOs enable operators to efficiently meet local energy needs and international export demands. In a continent where political and security risks can impact onshore operations, offshore FPSOs offer a safer alternative by distancing critical assets from areas prone to instability or sabotage (see also: Oil rig security).

FPSO Africa: Facing Challenges

As the offshore oil and gas industry in Africa experiences significant growth, FPSO operators are navigating a complex landscape of challenges that shape their strategies and operations. While Africa offers immense potential with its deepwater reserves and expanding energy demands, the operational environment is far from straightforward.

One of the foremost challenges is the ageing fleet of FPSOs operating across African waters. Many of the existing units were designed decades ago and now require substantial upgrades to extend their lifespan and meet the technical demands of new fields. Century Group's upgrade of the FPSO Tamara Nanaye is a telling example, where significant enhancements to hull integrity, topside equipment, and mooring systems were necessary to align with modern performance and environmental standards.

Environmental compliance has emerged as a decisive factor. Across the board, operators such as SBM Offshore, Yinson Production, and BW Offshore are under pressure to reduce greenhouse gas emissions, cut routine flaring, and improve overall energy efficiency. International commitments drive these environmental expectations and are increasingly reflected in local regulations and project tendering requirements. Operators respond with technologies like carbon capture modules, closed flare systems, and integrating renewable energy solutions.

Africa's infrastructural limitations compound these technical challenges. Unlike mature production regions, many parts of Africa lack extensive pipeline networks and shore-based processing facilities, which forces operators to rely heavily on FPSOs as self-contained production hubs, while also dealing with logistical complexities related to transporting equipment and personnel to remote offshore locations.

Furthermore, regulatory environments across Africa vary widely, and local content requirements add layers of operational complexity. For example, Nigeria's stringent local participation laws require operators to engage local suppliers and workforce, which, while beneficial for national development, demands careful planning and resource allocation from FPSO contractors.

Operational reliability is another concern. Downtime from equipment failures or maintenance interruptions can significantly impact production targets. To mitigate this, operators like MODEC and Ocyan have accelerated digital transformation initiatives, using predictive maintenance tools and digital twins to anticipate and prevent operational issues before they escalate.

Safety remains a non-negotiable priority. The remote nature of FPSO operations, coupled with challenging sea conditions, necessitates high safety standards and robust emergency preparedness. Companies like Shapoorji Pallonji and SBM Offshore continue to invest in safety culture and technologies that ensure personnel and environmental protection.

FPSO operators in Africa are prioritising technologies that enhance real-time awareness and response capabilities. E-mustering would fit seamlessly into this trajectory, providing an automated, reliable means to track crew movements and ensure full accountability in emergency scenarios. As operators push further into digitalisation and integrated safety management, the deployment of e-mustering systems seems like a logical progression.

Adding to these layers of complexity is the evolving landscape of the global energy transition. While Africa's offshore fields remain central to the continent's energy future, operators face mounting expectations to align their operations with decarbonisation goals. This dual mandate — to sustain oil and gas production while transitioning to lower-carbon solutions — is evident in initiatives such as Yinson Production's Zero Emissions FPSO concept and SBM Offshore's EmissionZERO® program. (2)

FPSO Africa: The next decade (2025–2035)

So, what does the future of FPSO operations in Africa look like in the next ten years? In short, it is poised at a dynamic crossroads of opportunity and responsibility. Over the next decade, Africa's offshore energy sector is set to witness a steady rise in FPSO deployments, driven by deepwater discoveries, ageing infrastructure modernisation, and growing environmental and economic imperatives.

Africa's offshore basins, particularly along the western coast in countries like Nigeria, Angola, and Ghana, remain rich with potential. According to the FPSO industry insights laid out in the guidebook, a significant number of global FPSO projects — more than 50 — are anticipated within the coming five years, with Africa expected to claim a considerable share of this pipeline. Operators such as Century Group are boldly projecting 25% annual growth, underpinned by both new field developments and upgrades of existing assets. These figures signal a promising horizon for FPSO contractors looking to tap into Africa's resource wealth.

Yet, this expansion is not merely about adding numbers to fleets. Much of Africa's current FPSO infrastructure is ageing, requiring substantial investment to remain viable. Century Group's upgrade of the FPSO Tamara Nanaye is emblematic of this trend. The project's comprehensive overhaul — from structural reinforcements to enhanced production capabilities and modern environmental controls — reflects the broader need across the continent to revitalise older units for the challenges of new fields and stricter operational standards.

A parallel transformation is unfolding in how operators address environmental concerns. The guidebook reveals a consistent theme: sustainability is no longer optional — it is a mandate. Leading contractors such as SBM Offshore and Yinson Production are embedding emissions-reduction technologies into their project blueprints. Carbon capture modules, closed-flaring systems, VOC recovery units, and even the ambitious concept of fully electric-drive FPSOs are emerging as standard features rather than exceptions. In this regard, it is fair to argue that Africa's FPSOs are increasingly being designed not just for production efficiency but also for environmental responsibility.

Beyond technology, the African FPSO landscape is being reshaped by policy and societal expectations. Local content development is not merely a regulatory checkbox; it is becoming a competitive differentiator. Governments, particularly in Nigeria, are enforcing frameworks that demand deeper participation from local industries and the workforce. Century Group's emphasis on domestic capacity building and in-country modification capabilities illustrates the growing importance of nurturing local expertise and economic inclusion.

Moreover, digitalisation is quietly becoming the backbone of operational excellence. Operators like MODEC and Ocyan are leading the charge, implementing digital twins and advanced analytics to preempt equipment failures and reduce operational downtime. These initiatives are more than technological enhancements — they represent a shift toward data-driven, proactive management of offshore assets, essential for the harsh and remote environments where African FPSOs operate.

As global energy markets evolve, the role of FPSOs in Africa is also being redefined. While fossil fuels remain a cornerstone of Africa's economic aspirations, there is a visible effort among operators to align with global energy transition goals. Concepts such as hybrid FPSOs, powered partly by renewable sources like floating wind, are moving from the drawing board to reality. This dual approach — sustaining oil production while preparing for a lower-carbon future — ensures that African FPSO projects remain relevant and investable in an increasingly climate-conscious world.

In conclusion, the outlook for FPSOs in Africa is one of cautious optimism, marked by growth tempered with responsibility. The coming decade will see African waters host a new generation of FPSOs: smarter, cleaner, more resilient, and deeply integrated with local economies. For contractors and operators alike, success will hinge not only on technical prowess but on their ability to innovate sustainably, collaborate locally, and navigate a shifting global energy landscape.

FAQs FPSO Africa

Why is Africa a key region for FPSO deployments?

Africa is rich in offshore oil and gas reserves, particularly in West Africa (Nigeria, Angola, Ghana) and emerging areas like East Africa. However, the region often lacks extensive onshore infrastructure, such as pipelines and processing terminals. FPSOs provide a flexible and cost-effective solution, allowing operators to produce, process, and store hydrocarbons directly at sea, close to the production site. They eliminate the need for major shore-based facilities and can be relocated once a field is depleted, making them ideal for both large and marginal offshore fields in Africa's dynamic energy landscape.

What role do FPSOs play in Africa's energy transition and sustainability goals?

Although FPSOs are traditionally associated with fossil fuel production, operators in Africa are increasingly embedding advanced sustainability technologies into their FPSO designs and operations. According to the guidebook, major players like SBM Offshore and Yinson Production are integrating carbon capture systems, closed flare solutions, VOC recovery, and hybrid power generation — even considering renewable integrations such as floating wind power. These initiatives aim to reduce emissions and align offshore production with global climate goals while still supporting Africa's immediate need for energy security and economic development.

How are safety and operational efficiency managed on African FPSOs?

Operational safety is a cornerstone of FPSO management in Africa. Companies across the region are adopting advanced monitoring systems, predictive maintenance tools, and rigorous safety protocols to ensure personnel well-being and minimise operational risks. Initiatives like Ocyan's digital twin program and MODEC's predictive analytics help preempt mechanical failures and enhance situational awareness. Additionally, safety achievements like those of Shapoorji Pallonji Energy, recognised with multiple international awards, demonstrate the industry's commitment to high safety standards. These efforts not only protect the workforce but also improve uptime and overall efficiency in the challenging offshore environments of Africa.

Takeaway

Africa's FPSO market is on an upward trajectory, offering vast opportunities for energy growth and economic development. As operators modernise fleets and embrace sustainable technologies, attention must also turn to safeguarding personnel in increasingly complex offshore environments. Advanced emergency systems like e-mustering are becoming essential, providing real-time crew accountability and enhancing response efficiency during critical situations. As digitalisation accelerates, integrating such technologies is not just a safety upgrade but a necessary evolution for resilient FPSO operations in Africa's demanding and remote offshore settings.

Delve deeper into one of our core topics: Personnel on board

Glossary

Carbon capture is a process that captures carbon dioxide (CO₂) emissions from sources like power plants or industrial facilities before they enter the atmosphere. The captured CO₂ is then transported and stored underground in geological formations or used in industrial processes. Carbon capture helps reduce greenhouse gas emissions, supporting climate goals while allowing continued use of fossil fuels during the energy transition. (3)

References:

(1) https://www.fpsonetwork.com/events-fpso-africa-congress

(2) The FPSO contractor guidebook, FPSO Africa congress 2025

(3) IPCC Special Report on Carbon Capture and Storage, Cambridge University Press, 2005.

Author

David Gordon, VP Sales Safe Energy

David Gordon has nearly 20 years of experience in the Oil & Gas industry. Throughout his career, he has consistently focused on embracing technology and championing automation as a tool to improve HSE processes and increase efficiency.