Challenges in the FPSO Supply Chain: Round Table

By George Backwell
Monday, June 30, 2014
FPSO: File photo

FPSOs play a key role in deepwater oil and gas production. A 'DW Monday' analysis of FPSO projects found cost overruns of nearly 40% and average project delays exceeding one year for some. In response to this DW recently brought together 20 companies from across the FPSO supply chain in a round table session to identify the challenges facing the sector:

  • Capital cost escalation: “Where you do save is to look at the whole development, not just the production system” – Major E&P Company
  • Variance in guidelines from operators: “There are so many standards and requirements that this drives the cost up considerably” – EPC Contractor
  • Variance in regulations worldwide: “US regulation requirements in the Gulf are a driving factor behind cost increases” – Equipment Supplier
  • Poor presentation of specification by operators: “Requirements are presented in stacks of documents. This is very difficult for contractors to deal with and makes the process side of the business much more expensive” – Major E&P Company
  • Over-engineering and scope creep: “Scope creep happens all the time in every project. This may be necessary but it will always delay the construction process” – Shipyard
  • Supply chain concerns: “It’s a highly complicated supply chain, [but] major clients that come to us understand the problems” – FPSO Leasing Contractor
  • Local content requirements: “Changing of specifications [for] local content are major concerns. Local content is an understandable requirement but partners need to be consistent” – Offshore Contractor
  • Contracting challenges: “Nobody else signs 15 year contracts. We don’t enjoy the upside when rates are high and operators complain when we demand higher dayrates at the end of the contract” – FPSO Leasing Contractor

The team also identified potential solutions to these challenges – which they will discuss in the next 'DW Monday'.

Douglas-Westwood's  earlier paper 'FPSO Industry Must Re-Think Supply Chain' is at: http://bit.ly/TIRrul

Source: DW Monday

Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Permanent Magnet Technology for Maritime Propulsion

Multipurpose vessels, especially those that operate primarily at part loads, have been facing pressure when it comes to making money in today’s business environment.

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

NY Harbor Supply & Distribution Fall Reception/Buffet

More than 600 attendees are expected at the 52nd annual New York Harbor Supply & Distribution Fall Reception/Buffet for the energy and energy related industries

Offshore

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

Crowley Receives Heavy-Lift Deck Barge in Singapore

Crowley Maritime Corporation’s solutions group announced today that it has received the first two of potentially four, new heavy-lift, ballastable deck barges (HDBs)

Signet Transports Second LLOG Rig to GofM

On September 14, five Signet Maritime ASD/Z-Drive tugboats, the SIGNET ENTERPRISE, SIGNET RELIANCE, SIGNET MAGIC, SIGNET WEATHERLY, and SIGNET VOLUNTEER successfully

Naval Architecture

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

GTT Earns Five AIPs for Multi-gas Membranes

Gaztransport & Technigaz (GTT), designer of membrane containment systems for the maritime transportation and storage of LNG (Liquefied Natural Gas) announced five

Consulting

DMR Examines Container Terminal Congestion Issues

Container port congestion has been hitting the headlines recently, but the reasons for it vary widely and in many cases it is only a short term issue. Certain world

IMO Takes Important Step Towards Electronic Certificates

In the future, the IMO member States should accept the use of electronic certificates. This is the request of the Facilitation Committee (FAL) and, hence, the road is paved for less paperwork,

ISS Chile Advising on Oil spill at Quintero Bay

Inchcape Shipping Services (ISS) Chile is advising of an oil spill at Quintero Bay, Nr Valparaiso, Chile, following an incident on Thursday 24th September at

Offshore Energy

N-Sea Completes Inaugural System Diving Scope

Inspection, maintenance and repair (IMR) specialist N-Sea has recently completed its inaugural diving scope with the TUP Diving System (Transfer Under Pressure).

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

Signet Transports Second LLOG Rig to GofM

On September 14, five Signet Maritime ASD/Z-Drive tugboats, the SIGNET ENTERPRISE, SIGNET RELIANCE, SIGNET MAGIC, SIGNET WEATHERLY, and SIGNET VOLUNTEER successfully

 
 
Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2318 sec (4 req/sec)