42 YINSON HOLDINGS BERHAD VALUE CREATION AT YINSON MARKET LANDSCAPE YINSON PRODUCTION In 2024, the crude oil and natural gas market manoeuvred through a multifaceted environment marked by controlled Organization of the Petroleum Exporting Countries plus (OPEC+) supply and intensifying geopolitical tensions. While energy demand continues to outpace supply across all transition scenarios, the demand-supply imbalance is anticipated to become even more severe in the lead-up to 2030. These factors continue to anchor energy security as a central concern, with efforts on all fronts to keep energy affordable and stable. Oil prices have remained steady despite the volatile external environment, reflecting these efforts. Brent crude remained within a monthly range of USD 70 to USD 90 per barrel in 2024, making it one of the most stable years in more than two decades. These factors continue to propel investments in the FPSO market, which is anticipated to receive USD 91.5 billion of CAPEX investments until 2029. FPSOs play a critical role in energy production, from both existing and new fields, especially in deep and ultra-deepwater settings where they are often the only viable solution. Brazil, Asia and Africa are key markets for the FPSO industry due to their significant offshore oil & gas reserves and ongoing exploration activities. Brazil’s pre-salt fields, with their vast oil deposits, have driven substantial investments in FPSO units. FPSO demand is growing in Asia, due to rising energy demand and new offshore discoveries. Africa, especially West Africa, is seeing a surge in FPSO projects, with countries like Nigeria leading the way in deepwater exploration. Note: Middle case scenario assuming, among others, oil price of USD 60 to 80 per barrel, world economic growth of 3% to 4% per year and global energy demand growth of 1% per year. Source: Energy Maritime Associates – Floating Production Systems Outlook Report, 2024 Issue 4. Projected FPSO market growth (2025 – 2029) USD 91.5 billion total projected CAPEX 54 FPSO project awards expected 11 FPSO projects awarded per year on average Africa 13 projects USD 23 billion CAPEX Asia 11 projects USD 9 billion CAPEX Liquids production by asset status compared with demand forecast, 2010 − 2050 (Million barrels per day) Source: Rystad Energy 2024 Global FPSO and CCUS Market Outlook Report. 0 20 40 60 80 100 120 2015 2020 2025 2030 2035 2040 2045 2050 Producing Low case 1.8 °C Mean 2.0 °C High case 2.2 °C Additional unsanctioned volumes of 40 million barrels per day to reach mean liquids demand in 2035. Under development Yet to be sanctioned Brazil and South America 22 projects USD 43 billion CAPEX
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