The Terra Nova FPSO will be the first floating production installation to operate in the unique and harsh environment of the Grand Banks. In order to avoid the threat of icebergs the FPSO will be able to quickly disconnect from its mooring and to proceed under its own power. The FPSO is therefore required to be certified as both an offshore installation and as a ship. The paper focuses on initiatives implemented to ensure fitness for purpose of the installation within a complex regulatory climate while reducing commercial risk related to the broad geographic and technical spread of development activities. The paper also provides an overview of the Terra Nova development and discusses prominent technical challenges encountered.