From First Steel to Sail Away: China's Growing Dominance in the Floater Market
Over the past few weeks, the floating production industry has witnessed a series of significant milestones. On the surface, these developments involve different projects, operators, and regions. Looking closer, however, they all point to the same trend: China's emergence as the global center of gravity for FPSO, FSO, and increasingly FLNG construction and integration. From Angola to Vietnam and the South China Sea, some of the industry's most important execution milestones are now taking place in Chinese yards.
Greater PAJ FPSO: First Steel Cut at CIMC Raffles
A major milestone was recently achieved on the Greater PAJ FPSO project offshore Angola, where the first steel cutting ceremony for the topside process modules was held at CIMC Raffles' Haiyang yard in China. The event officially marked the start of fabrication activities for what is one of the most important deepwater developments sanctioned in Angola in recent years.
Operated by Azule Energy, the Greater PAJ development combines five fields across Blocks 31 and 31/21 and represents Angola's first integrated cross-block development. The new FPSO is designed to produce up to 95,000 barrels of oil per day, with first oil targeted for 2029.
The project is also strategically important for CIMC Raffles. While the company has extensive experience in FPSO hulls and topside modules, the Greater PAJ contract marks a significant step toward full EPCIC delivery, covering engineering, procurement, construction, installation and commissioning of the complete floating production facility.
PAJ FPSO topside first steel cut. Source: Azule Energy
Kaiping South: Asia's Largest Cylindrical FPSO Enters Construction
Further north in Qingdao, COOEC has continued advancing the Kaiping South Field Development Project, where fabrication has commenced on what is expected to become Asia's largest cylindrical FPSO. The project achieved first steel cut earlier this year and is now progressing into full construction.
The vessel is being developed for CNOOC's deepwater Kaiping South field in the South China Sea. When completed, it will feature a fully loaded displacement exceeding 170,000 tonnes and crude oil storage capacity of approximately 770,000 barrels, making it one of the largest cylindrical floating production units ever constructed.
The project builds upon experience gained from Hai Kui No. 1, Asia's first cylindrical FPSO, and further demonstrates China's determination to develop indigenous floating production technologies for deepwater applications. Designed for operation in typhoon-prone waters, the unit showcases an alternative to conventional ship-shaped FPSOs and highlights continued innovation within the Chinese offshore sector.
Kaiping South steel cut ceremony. Source: COOEC
FSO PTSC Lac Da Vang Sails Away from Nantong
While new projects are entering fabrication, others are successfully reaching completion.
On 21 July, the FSO PTSC Lac Da Vang (LDV) sailed away from Titanwind yard, Tongzhou Bay, Nantong, beginning its journey to the Lac Da Vang Field offshore Vietnam. The vessel was delivered by OceanSTAR Elite, acting as EPCC contractor, for PTSC Asia Pacific, the joint venture between PTSC and Yinson Production.
Construction began in February 2025 and progressed through all major milestones, including steel cutting, keel laying, hull fabrication, launching, commissioning and final delivery within approximately 16 months. During execution, the project accumulated more than 1.6 million safe working hours without a lost-time incident, highlighting strong construction and project management performance.
The vessel features storage capacity exceeding 500,000 barrels of crude oil and will support Murphy's Lac Da Vang field development offshore Vietnam. According to project partners, the unit was completed ahead of the original contractual schedule and is expected to play a key role in achieving the field's first oil target.
The successful sail-away is also a notable achievement for OceanSTAR Elite, demonstrating the growing capability of independent engineering contractors and Chinese shipyards to deliver offshore floating assets on competitive schedules and to international standards.
FSO PTSC sail away, source: OceanStar Elite
Other Floater Developments Worth Watching
Several additional floating production projects have also generated noteworthy news over the past month.
The North Hub (Geng North) FPSO for the Eni-Petronas joint venture recently achieved its first steel-cutting milestone, marking the start of construction for one of Southeast Asia's most significant gas developments. The FPSO will serve as the processing hub for the Geng North and Gehem fields offshore Indonesia.
Meanwhile, MODEC announced that the forward hull section of its FPSO Gato do Mato, destined for Brazil, departed Japan and is now heading to China for final integration. The project also marks the first application of MODEC's Next Generation Hull (NGH) design.
OceanSTAR Elite has also continued to advance the Sepat FPSO project for Petronas, with EPC and procurement activities gathering pace, further strengthening the company's presence in the regional FPSO market.
The Real Story: China's Growing Center of Gravity
Although these developments span Angola, Vietnam, Indonesia, Brazil, and the South China Sea, they share a common characteristic: China sits at the center of nearly all of them.
The Greater PAJ FPSO is being fabricated at CIMC Raffles in Haiyang. The Kaiping cylindrical FPSO is under construction at COOEC's Qingdao facilities. The Lac Da Vang FSO sailed away from Nantong. The Gato do Mato FPSO hull is moving to China for integration. Even newer projects such as North Hub and Sepat increasingly involve Chinese contractors, engineering houses, fabrication yards, or supply chains.
This is perhaps the most important industry trend emerging today. Twenty years ago, China was largely viewed as a low-cost fabrication destination. Ten years ago, it evolved into a major module fabrication hub. Today, Chinese companies are increasingly leading complete EPCIC execution, engineering design, procurement management, integration, commissioning, and even proprietary technology development.
While Singapore remains a key commercial hub and South Korea continues to play an important role in high-specification offshore construction, the volume of recent project activity suggests that the industry's center of gravity is continuing to shift toward China. The country's combination of yard capacity, engineering resources, project financing capability, and growing execution track record is making it increasingly difficult for competitors to match.
For the floating production sector, the recent headlines are not simply about steel cuts, hull sections, or sail-away ceremonies. They reveal where the next generation of floating assets is being built. Increasingly, the answer is China.
References
Azule Energy. (2026, July). Greater PAJ first steel cut. https://www.azule-energy.com/en/energy-portfolio/our-portfolio/greater-paj-2/
Azule Energy. (2026, June 22). ANPG, Azule Energy and Blocks 31 and 31/21 partners reach Final Investment Decision on Greater PAJ Project offshore Angola. https://www.azule-energy.com/wp-content/uploads/2026/06/PR_GPAJ_FID_III.pdf
CIMC Raffles. (2026, June 24). CIMC Raffles signed the contract for Greater PAJ FPSO EPCIC project. https://www.cimc-raffles.com/en/index.php?m=content&c=index&a=show&catid=29&id=708
MODEC. (2026, July 2). Forward section of MODEC's next generation hull for FPSO Gato do Mato departs for integration at China yard. https://www.modec.com/news/2026/20260702_pr_GdM-ForwardSection-Departure.html
Ocean Energy Resources. (2026, March 9). Construction of Asia's largest cylindrical FPSO. https://ocean-energyresources.com/2026/03/09/construction-of-asias-largest-cylindrical-fpso/
OceanSTAR Elite Group. (2026, July 22). FSO PTSC LDV sets sail following high-quality delivery in 16 months. https://www.oceanstarelite.com/2026/07/22/fso-ptsc-ldv-sets-sail-following-high-quality-delivery-in-16-months/
OceanSTAR Elite Group. (2026). News. https://www.oceanstarelite.com/news/
Offshore Energy. (2026, July 23). Yinson Production and PTSC's FSO heads off to Southeast Asian oil project. https://www.offshore-energy.biz/yinson-production-and-ptscs-fso-heads-off-to-southeast-asian-oil-project/
OE Digital. (2026, July 24). Eni-Petronas JV starts Indonesia-bound FPSO construction. https://www.oedigital.com/production/fpso
PetroVietnam Technical Services Corporation (PTSC). (2026, June 24). PTSC successfully holds naming and sail-away ceremony for FSO PTSC Lac Da Vang, primed for Lac Da Vang field's first oil target. https://www.ptsc.com.vn/en-US/news/ptsc-news-1/operating-news/ptsc-successfully-holds-naming-and-sail-away-ceremony-for-fso-ptsc-lac-da-vang-primed-for-lac-da-vang-fields-first-oil-target
Xuanze, J. (2026, March 8). A new milestone in CNOOC's deepwater project: The construction of Asia's largest cylindrical FPSO has begun! LinkedIn. https://www.linkedin.com/posts/dr-ju-xuanze-xavier-475881a3_a-new-milestone-in-cnoocs-deepwater-project-activity-7436305598301900800-MLHa
