69 MARKET OVERVIEW AND OUTLOOK Source: Energy Maritime Associates – Floating Production Systems Outlook Report, 2023 Issue 4; World Energy Outlook 2023, IEA. • Global oil demand expected to reach 104 million barrels per day towards 2030. • Global oil demand is expected to peak in 2026, with demand in developing regions only peaking after the mid-2030s. • New projects needed to compensate for natural field declines. • High market interest for FPSO conversions and redeployments due to potential for shorter delivery schedules and lower CAPEX compared to new builds. • Increasing demand for leased FPSOs compared to owned units. • South America and West Africa, where Yinson Production has a solid presence, are the main growth areas. About 40 of the 63 FPSO projects that are expected to be awarded between the current year and 2030 are anticipated to be in these regions. • Offshore production is expected to make up 20% of new production, of which 60% is expected to be deepwater. • From a cost of supply perspective, offshore production is robust. • Offshore deepwater projects are forecasted to drive production growth by about 7.7% CAGR between 2022 and 2030. • From 2010 to 2022, 75% of all floaters installed were FPSOs. • New exploration and production activities are taking place in both new and mature regions, fuelled by improved project economics. • Robust demand outlook near-term mostly for mid-sized to large FPSOs with CAPEX of over USD 1 billion. Global demand for oil to remain high Offshore liquid supply is essential to meet global demand FPSOs are the key solution for deepwater Other market factors YINSON PRODUCTION IS UNIQUELY POSITIONED TO CAPITALISE FROM CURRENT MARKET CONDITIONS BUSINESS REVIEWS | YINSON PRODUCTION
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