Lessons learned from ukcs oil and gas projects 20112016. The fpso will be operated by modec management services pte ltd. The fpso conversions and internal turret were done at the keppel shipyard in. Contracts project timeline currency basket insurance scheme fiscal requirements financial scheme guarantees baseline project cost converted lump sum contract and final price development a company of saipem snamprogetti technical development allowance factors award rates or services lump sum, conversion factors project risk profile contract equirements. Himadri banerji at the 2nd fsru conference 26th to 29th nov 20 singapore 2. Floating production storage technology sbm offshore trackrecord. Rambolls risk and safety philosophy is based on the belief that all accidents can be avoided if the proper procedures are available and carefully followed.
Risk management approaches in oil and gas onshore construction projects project management mario dakovic, miro hegedic university of zagreb, faculty of mechanical engineering and naval architecture ivana lucica 5, zagreb, croatia abstract risk management is a vital decision making process useful for the successful delivery of projects. On an fpso, hundreds of people are confined out at sea on a huge, floating refinery, with almost two million barrels of oil stored under their feet. There are also the contracts dealing with a range of obligations from design, conversionnewbuild, module fabrication, vendor subcontracts for. Risk management of key issues of fpso article in journal of marine science and application 114 december 2012 with 141 reads how we measure reads. The fpso will be used on the alma field, previously known as the argyll field, which was the first oil field to be developed in the. The study then examines eight cases of fpsos operating in nearshore locations around the globe identifying proven risk mitigation and management practices and lessons learned that might benefit future fpso projects. Risk 5 management of disputes risk 6 litigation readiness david seah. This resulted in the successful execution of a number of significant conversion project awards.
Contracts, the authors believe epc contracts will continue to be a preeminent form of construction contract used on largescale oil and gas projects in most jurisdictions. A guide to contract management chartered institute of. It will assist faculties and administrative units to think more strategically and improve their ability to set common priorities. Upon arrival at alongside the4 fpso at point b unweld sea fastening and prepare for offloading. Floating production storage and offloading vessels are offshore production facilities. A risk register records details of all the risks identified for the project.
Operational risk management on fpso, a continuous priority. Mitigation plans or alternate strategies should be included. As we respond to current market enquiries and customer requirements, sembcorp marine will continue to. After conversion, the fpso will have a contractual processing. The next section of this guide describes the benefits which project risk analysis and management can bring to a project and also the wider benefits to the organisation and its customers. Challenges and opportunities that define the success of an.
Whether a newbuild or a conversion, fpso project structures have become relatively standardized in the last 30 years. Himadri banerji at the 2nd fsru conference 26th to 29th nov 20 singapore. A risk management resource to manage liability in the healthcare practice 7 sample job description for contract manager the networks of contractual relationships between healthcare businesses and providers, agencies and vendors have become increasingly complex. In response to todays markets needs, new convertible contracts offer a compromise contractual scheme reimbursable, open book lump sum turn key c o n t r a c t c o n v e r s i o project definition, n executionplan project implementation maintainsimultaneouslythe mainadvantagesof the twoextremecontractualforms f e e d project execution ep c. This interactive, applicationsdriven 5day gl o macs asset integrity management for purposebuilt fpsos and subsea system facilities training course offers a professional approach providing access to support tools in asset integrity management decision making. We respect your privacy, by submitting this form you agree to having your details passed onto the sponsor who may promote similar products and services related to your area of interest subject to their privacy policy. From the above, it is clear that contracts for the acquisition of a fpso unit is more likely to be seen as an agreement to enter into a contract of sale. The financing aspects of the acquisition of fpsos a legal. Suitability of car cover for offshore contractors the standard club.
He has advised on contract negotiation and dispute management in multiple floating production storage and offloading fpso. Passing of title and risk title section 18 of the sga deals with the passing of title of future goods and provides that where there is a contract for the sale of unascertained or. This has given such projects legal and financial certainty. Given the technical parallels between fpso and flng projects, it is. Passing of risk the general rule is that risk passes with the property. Equipment failures of offloading system and fire accidents were analyzed based on the floating production, storage and offloading fpso features. This paper considers the treatment of some key risks under such epc contracts. Under the agreement, each party agrees to take full. The name of the vessel to be converted was not disclosed in the companys press statement. The design and implement of fpso assets management. Asset integrity management for fpso and subsea system. Cesrs guidelines on risk measurement and the calculation of global exposure and counterparty risk for. The activities themselves are divided into two distinct but interdependent phases, upstream and downstream of the award of the contract.
Fpso conversion project with shapoorji pallonji and bumi. It will show the principles of asset integrity management for subsea systems, risers and fpsos and it will show how the use of real. Ideally, the project documents will allocate responsibility for certain risks to the party best situated to bear those risks, thereby minimizing the likelihood and the cost of each risk. Conversion risks the company has from time to time entered into a single contract for the conversion of a tanker into an fpso or fso to service a specific project. Over the course of 20 the company continued to reshape its project management capabilities and invest in operational development to accommodate the increasingly complex largescale fpso projects. This section of the plan shall identify major risks including operational, contractual, and security, and key issues identified during the pes facing the project. Project management nigeria conversion turret 1 million 35,000 50,000 175 300. The study confirms that there is a strong safety record available on more than 1,000 years of fpso operation around the globe.
S curtis, a legal perspective to fpso conversion, platform oil and gas. Epcic contract negotiation and management petrosync. Fpso costs are highly variable and particular project conditions must be carefully considered, such as the scope of work in question e. In the five years 20112015, there was an average of eight field startups irrespective of field size per year see figure. The fpso contractor further reduced project schedule risk by prepurchasing and committing to a very large crude carrier vlcc hull suitable for conversion. Legal issues to consider in structuring of new floating. Initial cost the upfront cost of an fpso can be more than the cost of building a large fixed offshore platform. Legal issues to consider in structuring of new floating lng. Operational risk management on fpsos, a continuous priority. Fpso conference workshop legal risks in fpso conversion. During the 18month module fabrication, hull conversion and integration period on the fpso in singapore, key members of the ipt were temporarily relocated there or.
Robust management system, o includes risk prevention and mitigation, permit to work system, hsse plan, but also. The design and implement of fpso assets management system. Consequently once the property in the fpso unit is held to have passed to the operator, the risk is also transferred. Over 300 pages of commentary on risk management and contracts.
Fpso mooring require bollards up to 100 tonnes tidal water will require adjustable mooring using winches try to use existing winches conversion only integration at quayside without facilities, allow for mooring budget typ. Fault tree analysis fta, and failure modes and effects analysis fmea methods were examined based on information already. Including the two new fpso projects i am going to present today, we own a total of 18 fpsos in five countries worldwide, of which 12 are in brazil. Procon is a capital project contract risk management solution that automates compliance with contractual obligation and connects all decision makers to protect major capex investment, drive performance and improve profitability across the asset lifecycle.
Successfully managing contract risk by forming winwin. Risk analysis of key systems have become a growing topic late of because of the development of offshore structures. Libra fpso conversion, and the commencement of service of newbuildings under longterm time charter contracts. Contracts principal project management contractor engineering epc contracts suppliers epc contract management and communication supply contracts epc contracts. Fpso field development ship drilling rig semisubmersible vessel subsea construction. Our epcic contract management course is developed to help you learn the required skillsets in effective allocation and management of risk in epcic contracts from negotiation, contract drafting, to project execution to ensure project success. This interactive, applicationsdriven 5day gl o macs asset integrity management for purposebuilt fpso s and subsea system facilities training course offers a professional approach providing access to support tools in asset integrity management decision making. This could occasion injustice in situations where the unit is partially constructed and is destroyed, or the contract is frustrated. Kent holland, based upon his knowledge and experience from over 20 years working with design professional contracts, risk management and insurance.
Risk factors relating to the company and the industry in which it operates. Guide to fpso floating production storage and offloading. Consulting naval architects and marine engineers, project managers. Wastate contract management manual 7 contract professionalfor the purpose of this manual, anyone who has some responsibility for the solicitation process, including writing contract language on behalf of an agency regardless of job title. Sbm offshore maintains its role as a pioneer by continuously investing in new technology, and offering. Risk mitigation in epc and epcm other factors affecting choice of contracting strategy other options key issues in epcm contracts overview epc and epcm procurement issues for owners 2 epc involves single point responsibility. The project teams including management, engineering and procurement are located in. Carleton is committed to risk management on a universitywide basis.
Fpso assets management system has unique industry characteristic, different parts can be integrated into one system. The company has from time to time entered into a single contract for the conversion of a tanker into an fpso or. Investment in fpso charter projects for petrobras in brazil. Personal safety is a major concern, which is why total deploys appropriate, scientific means on its fpsos to manage any type of risk. The third part of the paper is dedicated to the methods, methodologies and regulations of operational risk management. By learning about and using these tools, crop and livestock producers can build the confidence needed to deal with risk and exciting opportunities of the future. He has advised on contract negotiation and dispute management in multiple floating production storage and offloading fpso and floating storage. We respect your privacy, by submitting this form you agree to having your details passed onto the sponsor who may promote similar products and services related to your area of interest. For further information on how we process and monitor your personal data click here. Floating crane lift modules from the modules fabricators wharf and load them on a barge. However, for the purpose of this paper, i have focused on the following risk areas.
The design and operation of fpsos training manual, esd simulation training pty. Project management control system hand over contract award design and execution project start front end engineering design feed basic process. The content of operational risk management is characterized in details at the. Other contracts operate with a title transfer at delivery and where a large milestone payment is due and payable upon delivery of the fpso. Generation, in particular epc, epcc, epcm, epcic, alliance, turnkey, fidic, fpso conversion and construction, shipbuilding agreements. The purpose of an epc contract, at its simplest, is to allocate risk to the contractor for the main elements leading to completion of.
The epc contract was awarded in november 2006 and was scheduled for first oil. There is a risk that even if the prospective contractor does everything right in preparing and submitting a competitive bid or proposal to the government, and is the apparent winner, a competing contractor. The authors conducted a quantitative risk assessment of combustible gas under. Otc 23439 jubilee field fpsoa fast track delivery success. Based on this analysis with the exception of fpsos it was concluded that it is not. Ifcs assessment of the governance risks to development impacts. Floating production storage and offloading an overview. A significant component of successful risk management begins with how well the project participants allocate risks at the contract formation stage. Contract risk the probability of loss to the vendor from a buyer terminating a.
Outline technical overview background and history present market conditions likely developments financial and risk management considerations. Since our first fpso operations for shell in 1976, sbm offshore has executed over 30 fpso projects worldwide see note 1 on back page. Fpso assets management has three main parts which are input, core and output. Fault tree analysis fta, and failure modes and effects analysis fmea methods were examined based on information. Lashing and sea fastening of the modules on the barge. For the purpose of this research, the focus is on the success of the project and not to the failure since when introducing a new project in the portfolio of a company there is no intention to add failures. Now, there are nearly 70 fpsos operating around the world and they are a proven, costeffective alternative to fixed production platforms in the development of marginal and remote fields. Fpso and fpso topsides costs project controls portal. Iso framework for effective risk management 17 18 17 asmi 51st anniversary dinner. This risk management manual is a practical tool to assist carleton managers and staff in their decisionmaking process. The cips contract management guide is intended to cover all those activities associated with contract management.
Risk management of key issues of fpso springerlink. The integrity of these parts is useful for fpso management to increase productivity and decrease cost and risk. Commercial identifying of risks within companys business strategies and advising on risk management in all activities of the company both for domestic and international matters. When the oil and gas market collapsed in 2014, floating production systems werent spared. Chief executive officers signature has recently been circulated to many companies. Project risk analysis and management is a process designed to remove or reduce the risks which threaten the achievement of project objectives.
Cosco wins fpso conversion contract offshore energy today. The contract was awarded by modec offshore production systems singapore pte. Fpso conversion legal risks in associated contracts. Legal overview congressional research service summary federal procurement contracts are commonly divided into two main typesfixedprice and costreimbursementthat primarily differ as to whether the government or the contractor assumes the risk of increases in the costs of performance e.
Ship owners are urged to contact fisher maritime to work out a com prehensive strategy, for both the design con tract and building contract, that will meet the needs of the owner while minimizing risks of unwarranted design tradeoffs, delays, extra costs, and disputes. Fpso conversion legal risks in associated contracts david seah, ll. Jun 04, 2018 fpso business, and based on this experience we are participating in the coming fpso projects. Floating crane lifts modules in sequent onto the fpso. Overview lessons learned from ukcs oil and gas projects 20112016 5 the increase in investment has been driven by a number of factors including a previously favourable oil price and an increase in cash rich investors.
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