This session aims to discuss the state of the FPSO nation and market trends in upcoming near future. As the FPSO market is set to grow from its current market value of just over $28 billion to $30 billion by 2025. Ongoing offshore exploration and production activities compelled by depletion of onshore oil & gas reserves are poised to transform market trends over 2019- 2025. On top of that, at least 33 FPSOs are expected to be sanctioned from 2019 to 2021 due to the pick-up in oil and gas activities in the offshore sector.
Rather than investing in brand new FPSOs for marginal or brown fields, oil operators have successfully refurbished existing FPSOs and redeployed them accordingly. In this dynamic oil price climate, can redeployment be used as an alternative means to advance FPSO projects? However, the question of redeployment is not as easy as it may appear, and could require extensive modifications which impact project timelines and project commercials
COVID-19 IMPLICATION: CRITICAL CONTRACT MANAGEMENT TIPS TO RESOLVE CONTRACT DISPUTES AND REMOVE CONFLICTS
As COVID-19 spreads around the globe, it is having a major negative effect on international business and disrupting numerous global supply chains, including the FPSO industry. Countless contracts are being disrupted by factory shutdowns in the areas most affected by COVID-19. In recent weeks, thousands of force majeure were issued. However, COVID-19 will not give rise to a valid force majeure defense under every contract and in every circumstance, as different contracts and governing laws stipulate different requirements for different situations. Companies therefore need to proactively manage the related risks and carefully assess which party must ultimately bear the financial losses and conflicts caused by COVID-19.
INTEGRATING EFFECTIVE MEASURES FOR FPSO LIFE EXTENSION
Since many past projects are coming to an end and/or FPSO’s are reaching their design life, FPSO players are planning to extending the projects and lifetime to maximise their existing FPSOs potential, performance and uptime