Compliance for FPSO-Gulf of Mexico and Speculative Builds

Abstract

TX 75083-3836, U.S.A., fax 01-972-952-9435. AbstractFloating Production, Storage and Offloading (FPSO) facilities have developed over the last 40 years to become an increasingly popular solution worldwide for offshore field development. To date no FPSO has been deployed within the US Gulf of Mexico (GOM) where the dominant production facilities have been fixed structures and floating production system based on Spar, TLP, and Semi-submersible platforms. Higher oil prices and significant ultra-deepwater prospects extending farther beyond established pipeline infrastructure, make FPSOs an increasingly viable option. Operators, Contractors and new entrepreneurs worldwide want to capture that market and are committing to the FPSO solution by placing orders for speculative builds. Many of these build contracts are signed without a specific field destination or production contract in hand and are contracted with a "generic" FPSO specification. The design specification of a generic FPSO presents many challenges. Selecting a workable environmental design envelope and the type of regulatory environment the vessel should satisfy are some of the early decisions that will determine the success of the investment. This paper discusses the challenges of developing a speculative build in view of regulatory requirements worldwide and in the US GOM.