FPSO Conversions – Managing the Risk
Advertise Here
Trending Topics:
Saturday, November 15, 2014

Ship Equipment
Ship Maintenance
Ship Systems
Worldwide Metric
Freeman Marine
Neptune Group

Home Page
About MarineTalk
Buyer's Guide
World InfoDesk
Discussion Forums
Advisory Board
Advertising Information
Submit Company Listing
Edit Company Listing
Site Map
MarineTalk Site Search:
Featured Companies

Ferry Management Services Limited
www.ferrynews.com is a new website brought to you by ferry industry professionals, Ferry Management Services & Seatrade. Hyperlink Market Intelligence will take you to a 50,000 word database of global ferry information referenced by operator.
    United Kingdom

Tidewater Accounting and Bookkeeping Services
TABS provides tax preparation, bookkeeping and financial planning to customers worldwide. Tidewater Accounting focuses on Maritime taxes and international tax issues. Contact our firm for a free consultation for your personal or business tax issues.
    USA Virginia

Marine & Offshore Supplies, Inc.
Marine & Offshore Supplies, Inc ( MOS) provides materials for the Offshore and Shipbuilding Industries in USA, Canada, Mexico and South America. We represent 5 leading companies with components and materials of high quality to competitive prices.
    USA Florida

Digital Ship
Digital Ship is a London-based media company specialising in commercial maritime information technology, publishing a print magazine and weekly e-mail newsletter, with a series of conferences around the world.
    United Kingdom

FPSO Conversions – Managing the Risk


FPSO Conversions – Managing the Risk

As lower cost solutions for field development are sought, the conversions of existing tankers is becoming one of the preferred means of generating production capacity and it will continue to play a significant part in procurement and production strategies. The challenge for the contractors is how to manage and share the risks of delivering suitable capacity in a manner that will not only enable them to generate an acceptable rate of return but also keep their potential exposure to acceptable levels.

There are significant risks associated with the conversion of the existing tonnage, and in common with other forms of offshore construction, the FPSO conversion sector has seen numerous examples of projects which have experienced substantial cost overruns and delays. The risks of conversion itself are usually shared between the contractor and shipyard. The oil company will probably wish to approve the conversion contract with the shipyard, and the income stream from the production contract will the key to financing the conversion costs. The level of earnings and the security package the contractor is able to offer will decide whether the project is "bankable".
It is important to identify and assess carefully the risks of the project in the areas of scope of work, management, design liabilities, title, insurance, etc.

Aylward Publishing – International Offshore News  

About the Company

Latest Marine News and Technology Articles | Maritime 2014 Buyer's Guide


E-mail:  Contact Us

Copyright © 1998 - 2014 MarineTalk
Division of Link Internet Business Solutions
All rights reserved.

The reproduction, retrieval, copying or transmission of this Web site content,
in whole or in part, is not permitted without the express permission of
MarineTalk .