FPSOs

We advise on all aspects of FPSO projects from tender through to decommissioning both on the non-contentious side and also, crucially, on the litigation side, acting in the full spectrum of disputes.

Our expertise includes:
 

  • drafting and negotiating key contacts such as EPIC agreements, charters and OMAs
     
  • FPSO project financing
     
  • conversion and refurbishment disputes
     
  • hook-up and acceptance problems
     
  • production problems, including adjustment to hire rates
     
  • off-loading claims
     
  • decommissioning
     
  • liquidated damages, delay and disruption claims

Our experience includes:
 

  • Advised on the EPIC contracts for various FPSOs including AGMABI, USAN, AKPO, PAZLOR, FRADE and ICTHYS.
     
  • Advised a SURF contractor on a claim arising from a delayed FPSO project.
     
  • Advised on a claim arising from the breakdown of the main bearing of an FPSO turret.
     
  • Advised on a claim arising from damage to an FPSO riser.
     
  • Advised on a dispute relating to the underperformance of an FPSO contractor under an operating contract.
     
  • Advised on a claim in relation to an FPSO hull when extensive fatigue damage was identified early in the field life.
     
  • Advised on the renegotiation of the terms and conditions of a contract for the lease and operation of an FPSO.
     
  • Advised on disputes arising under EPIC contracts for FPSO’s relating to (i) delay; (ii) cost overruns; (iii) deficiencies in design; (iv) failed equipment and machinery; (v) whether the facility met the contractual specification; and (vi) warranty claims.
     
  • Advised a SURF contractor on substantial claims arising from the late delivery and hook up of the FPSO.
     
  • Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The disputes were against one of the world’s largest shipbuilders, the contract price being over US$700 million. 
     
  • Advised a FPSO Contractor in claims with shipyard worth $100m+ on a redeployment and upgrade project significantly delayed over budget, including regular attendance at the yard, LCIA arbitration facing the yard and advice on delivery of the FPSO into its charter.
     
  • Advised an FPSO Contractor on its position facing Charterer in respect of a North Sea heavy oil project delayed by several years, including advising on Acceptance criteria, off-spec hydrocarbons and variation rights, Production Targets and hire adjustment, off-spec production issues and liquidated damages.
     
  • Advised an FPU Contractor on termination of charter and transfer of O&M obligations following oil company insolvency; subsequent dispute concerning termination of the O&M contract.
     
  • Advised an FPSO Contractor on claim against turret design subcontractor for newbuild FPSO following difficulties on installation.
     
  • Representing an FPSO Contractor and a P&I Club on recovery of umbilical and related claims following winch wire failure during installation.
     
  • Advised a leading floating production company on a joint venture with a major conglomerate and the construction, acquisition, contracting, offtake and funding of the project in South America.
     
  • Advised lenders on the financing of a mobile offshore production unit and floating storage unit deployed in Western Africa.
     
  • Advised investors and the company on the structuring, contracting and funding of a floating production, storage and offtake vessel in Indonesia.
     
  • Advised a trading company on its chartering and storage arrangements in respect of a FSO.
     
  • Advised on the financing of an innovatively designed FPSO for operations in Brazil.
     
  • Advised in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.
     
  • Advised in respect of various contractual issues arising from the late delivery of a newbuild FPSO.
     
  • Advised in relation to a high-value dispute between an oil and gas contractor and an operator in respect of the interpretation of a daily base hire payment mechanism.
     
  • Led negotiations for new floating production developments offshore various locations including UK, Brazil, Nigeria, Mauritius, Angola, Cote d'lvoire, Indonesia Australia, New Zealand and Canada.
     
  • Resolved disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination.
     
  • Resolved disputes concerning modification of FPSOs to meet relocation requirements including transfer from UK to Brazil and Nigeria, transfer between locations in West Africa, relocating from UK to Asia and operations in Norwegian waters.
     
  • Negotiated contract terms for the replacement of an FPSO in production with a substitute facility to be modified and relocated off Equatorial Guinea.
     
  • Managed claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest FPSO dispute.
     
  • Negotiated various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil.
     
  • Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).
     
  • Issues relating to late arrival at the field, including liquidated damages for delay and liability for spread costs.
     
  • Issues relating to hook up and acceptance tests (and consequently payment of hire and at what rate).
     
  • Late delivery of a new build FPSO from a Chinese shipyard.
     
  • Negotiated detailed EPIC contract terms (including advising on issues such as step-in rights, termination provisions, warranty provisions, limitations on liability and knock-for-knock clauses, design responsibility, transfer of title, subcontracting and ECAs).
     
  • Advised on contract terms with field operators (bareboat charters, operations and management agreements).
     
  • Interpretation of bonus/malus contract provisions and impact on adjustments to daily base hire.

 

To sign up to our legal bulletin for those engaged in Oil and Gas floating production, Well Connected, please email OilandGas@shlegal.com

Global reach

From our offices in the UK, China, Dubai, Paris, Singapore and South Korea, we have extensive experience in offshore oil and gas projects and resolving international disputes. 

United Kingdom

United Kingdom

Charter negotiations
Leading negotiations for new floating production developments offshore.

FPSO disputes
Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 

Advising FPSO Contractor on its position facing Charterer in respect of a North Sea heavy oil project delayed by several years, including advising on Acceptance criteria, off-spec hydrocarbons and variation rights, Production Targets and hire adjustment, off-spec production issues and liquidated damages.

Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

FPSO delivery
Assisting in respect of various contractual issues arising from the late delivery of a newbuild FPSO.

FPSO hire dispute
Assisting in relation to a high-value dispute between an oil and gas contractor and operator in respect of the interpretation of a daily base hire payment mechanism.
 

Brazil

Brazil

Leading negotiations for new floating production developments offshore.


Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 


Resolving disputes concerning modification of FPSOs to meet relocation requirements including transfer from UK to Brazil and Nigeria, transfer between locations in West Africa, relocating from UK to Asia and operations in Norwegian waters.


Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.


Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil.

Acting for FPSO Contractor in claims with shipyard worth $100 million+ on a redeployment and upgrade project significantly delayed over budget, including regular attendance at the yard, LCIA arbitration facing the yard and advice on delivery of the FPSO into its charter.

Representing FPSO Contractor and P&I Club on recovery of umbilical and related claims following winch wire failure during installation (2017-2018).

Advising a SURF contractor on a claim arising from a delayed FPSO project.

Advising on a claim in relation to a FPSO hull when extensive fatigue damage was identified early in the field life.

Advising a SURF contractor on substantial claims arising from the late delivery and hook up of the FPSO.

Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).


Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

Nigeria

Nigeria

Leading negotiations for new floating production developments offshore.

Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 

Resolving disputes concerning modification of FPSOs to meet relocation requirements including transfer from UK to Brazil and Nigeria, transfer between locations in West Africa, relocating from UK to Asia and operations in Norwegian waters.

Advice to FPU Contractor on termination of charter and transfer of O&M obligations following oil company insolvency (2015-2016); subsequent dispute concerning termination of O&M contract (2018-present).

Advising on a dispute relating to the underperformance of a FPSO contractor under a operating contract.

Advising on the renegotiation of the terms and conditions of a contract for the lease and operation of an FPSO.

Mauritius

Mauritius

Leading negotiations for new floating production developments offshore.

Angola

Angola


Leading negotiations for new floating production developments offshore.

Acting for the client in relation to contracts for the construction and delivery of drillships to Angolese buyers, including delays and potential cancellation scenarios. Expected value US$200-300 million.

Represented a drilling contractor against an oil and gas company in a LCIA arbitration in relation to whether demobilisation could be undertaken during the term of the contract, and if so, what demobilisation fees and early termination fees were applicable.

Advising on the EPIC contract for a compliant tower.

Assisting owners of tanker detained by the Australian Maritime Safety Authority and in particular on subsequent loss of hire claims.

Cote d'Ivoire

Cote d'Ivoire

Leading negotiations for new floating production developments offshore.


Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil.

Indonesia

Indonesia

Leading negotiations for new floating production developments offshore.

Australia

Australia

Leading negotiations for new floating production developments offshore.

Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

New Zealand

New Zealand

Leading negotiations for new floating production developments offshore.

Canada

Canada


Leading negotiations for new floating production developments offshore.

Equatorial Guinea

Equatorial Guinea

Negotiating contract terms for the replacement of an FPSO in production with a substitute facility to be modified and relocated off Equatorial Guinea.

Korea

Korea

Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.

Advising an FPSO owner in relation to warranty claims arising out of an FPSO construction contract.  Led a team in a series of successful negotiations with the construction contractor.

Norway

Norway

Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.

Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil. 

Advising FPSO Contractor on claim against turret design subcontractor for newbuild FPSO following difficulties on installation (2015).

Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

Four-month secondment with leading FPSO operator, advising on various aspects of FPSO construction, conversion and operations.

Advising an FPSO owner in relation to warranty claims arising out of an FPSO construction contract.  Led a team in a series of successful negotiations with the construction contractor.

Netherlands

Netherlands

Acting for FPSO Contractor in claims with shipyard worth $100m+ on a redeployment and upgrade project significantly delayed over budget, including regular attendance at the yard, LCIA arbitration facing the yard and advice on delivery of the FPSO into its charter.

FPSO refitting dispute
Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

Advising an FPSO owner on a high value dispute under an EPIC contract arising out of variations and delays on a FPSO conversion.

South Korea

South Korea

Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

Ghana

Ghana

Advising on a claim arising from the breakdown of the main bearing of a FPSO turret.

Advising on a claim arising from damage to a FPSO riser.

China

China

Assisting in respect of various contractual issues arising from the late delivery of a newbuild FPSO.

Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

Advising a Chinese owner on a court dispute against a state-owned company, in respect of the construction of a FPSO.

Singapore

Singapore

Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

West Africa

West Africa

Business interruption claim

Advised a lead insurer on a business interruption claim of up to £40 million under an energy package policy. The claim related to loss of production at an FPSO operating offshore West Africa.

North Sea

North Sea

Defects liability insurance

Advising leading offshore contractor on a defects liability insurance policy in relation to the installation of an offshore wind farm in the North Sea costing approximately US$1 billion.

  • Angola


    Leading negotiations for new floating production developments offshore.

    Acting for the client in relation to contracts for the construction and delivery of drillships to Angolese buyers, including delays and potential cancellation scenarios. Expected value US$200-300 million.

    Represented a drilling contractor against an oil and gas company in a LCIA arbitration in relation to whether demobilisation could be undertaken during the term of the contract, and if so, what demobilisation fees and early termination fees were applicable.

    Advising on the EPIC contract for a compliant tower.

    Assisting owners of tanker detained by the Australian Maritime Safety Authority and in particular on subsequent loss of hire claims.

    Close
  • Australia

    Leading negotiations for new floating production developments offshore.

    Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

    Close
  • Brazil

    Leading negotiations for new floating production developments offshore.


    Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 


    Resolving disputes concerning modification of FPSOs to meet relocation requirements including transfer from UK to Brazil and Nigeria, transfer between locations in West Africa, relocating from UK to Asia and operations in Norwegian waters.


    Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.


    Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil.

    Acting for FPSO Contractor in claims with shipyard worth $100 million+ on a redeployment and upgrade project significantly delayed over budget, including regular attendance at the yard, LCIA arbitration facing the yard and advice on delivery of the FPSO into its charter.

    Representing FPSO Contractor and P&I Club on recovery of umbilical and related claims following winch wire failure during installation (2017-2018).

    Advising a SURF contractor on a claim arising from a delayed FPSO project.

    Advising on a claim in relation to a FPSO hull when extensive fatigue damage was identified early in the field life.

    Advising a SURF contractor on substantial claims arising from the late delivery and hook up of the FPSO.

    Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).


    Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

    Close
  • Canada


    Leading negotiations for new floating production developments offshore.

    Close
  • China

    Assisting in respect of various contractual issues arising from the late delivery of a newbuild FPSO.

    Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

    Advising a Chinese owner on a court dispute against a state-owned company, in respect of the construction of a FPSO.

    Close
  • Cote d'Ivoire

    Leading negotiations for new floating production developments offshore.


    Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil.

    Close
  • Equatorial Guinea

    Negotiating contract terms for the replacement of an FPSO in production with a substitute facility to be modified and relocated off Equatorial Guinea.

    Close
  • Ghana

    Advising on a claim arising from the breakdown of the main bearing of a FPSO turret.

    Advising on a claim arising from damage to a FPSO riser.

    Close
  • Indonesia

    Leading negotiations for new floating production developments offshore.

    Close
  • Korea

    Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.

    Advising an FPSO owner in relation to warranty claims arising out of an FPSO construction contract.  Led a team in a series of successful negotiations with the construction contractor.

    Close
  • Mauritius

    Leading negotiations for new floating production developments offshore.

    Close
  • Netherlands

    Acting for FPSO Contractor in claims with shipyard worth $100m+ on a redeployment and upgrade project significantly delayed over budget, including regular attendance at the yard, LCIA arbitration facing the yard and advice on delivery of the FPSO into its charter.

    FPSO refitting dispute
    Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

    Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

    Advising an FPSO owner on a high value dispute under an EPIC contract arising out of variations and delays on a FPSO conversion.

    Close
  • New Zealand

    Leading negotiations for new floating production developments offshore.

    Close
  • Nigeria

    Leading negotiations for new floating production developments offshore.

    Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 

    Resolving disputes concerning modification of FPSOs to meet relocation requirements including transfer from UK to Brazil and Nigeria, transfer between locations in West Africa, relocating from UK to Asia and operations in Norwegian waters.

    Advice to FPU Contractor on termination of charter and transfer of O&M obligations following oil company insolvency (2015-2016); subsequent dispute concerning termination of O&M contract (2018-present).

    Advising on a dispute relating to the underperformance of a FPSO contractor under a operating contract.

    Advising on the renegotiation of the terms and conditions of a contract for the lease and operation of an FPSO.

    Close
  • North Sea

    Defects liability insurance

    Advising leading offshore contractor on a defects liability insurance policy in relation to the installation of an offshore wind farm in the North Sea costing approximately US$1 billion.

    Close
  • Norway

    Managing claims and disputes concerning numerous FPSO new build projects including disputes concerning provision of inadequate reservoir and metocean data, errors and omission in FEED, major variations, delay and disruption to completion schedule, compliance with oil state inspection requirements, termination due to late completion, liquidated damages for delay, disputes concerning installation and location readiness, cost of rectification of defects on location, rectification of defects during production, and termination, including the largest  FPSO dispute.

    Negotiating various contracts for design, construction and installation of new build FPSOs including various projects offshore Australia, in the UK and Norwegian sectors, as for installation in West Africa and Brazil. 

    Advising FPSO Contractor on claim against turret design subcontractor for newbuild FPSO following difficulties on installation (2015).

    Assisting in relation to a major dispute between an oil and gas contractor and a shipyard concerning a refitting contract, covering all aspects of the refitting project.

    Four-month secondment with leading FPSO operator, advising on various aspects of FPSO construction, conversion and operations.

    Advising an FPSO owner in relation to warranty claims arising out of an FPSO construction contract.  Led a team in a series of successful negotiations with the construction contractor.

    Close
  • Singapore

    Major LCIA arbitration proceedings relating to substantial refit and refurbishment contract for an FPSO vessel (including issues such as termination rights, critical path delay, prolongation claims, the variations regime and scope of work).

    Close
  • South Korea

    Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

    Close
  • United Kingdom

    Charter negotiations
    Leading negotiations for new floating production developments offshore.

    FPSO disputes
    Resolving disputes relating to the operation of FPSOs including disputes concerning acceptance tests, production targets, produced oil quality, off-spec well fluids, loss of production due to shut in, reduced production due to off-take tanker delay and charter termination. 

    Advising FPSO Contractor on its position facing Charterer in respect of a North Sea heavy oil project delayed by several years, including advising on Acceptance criteria, off-spec hydrocarbons and variation rights, Production Targets and hire adjustment, off-spec production issues and liquidated damages.

    Represented client in two LCIA arbitrations arising out of a construction contract of a Floating Production Storage Offloading (FPSO) Vessel including warranty matters (i.e. post-construction defects). The dispute were against one of the world’s largest shipbuilders, the contract price being over US$700 million.

    FPSO delivery
    Assisting in respect of various contractual issues arising from the late delivery of a newbuild FPSO.

    FPSO hire dispute
    Assisting in relation to a high-value dispute between an oil and gas contractor and operator in respect of the interpretation of a daily base hire payment mechanism.
     

    Close
  • West Africa

    Business interruption claim

    Advised a lead insurer on a business interruption claim of up to £40 million under an energy package policy. The claim related to loss of production at an FPSO operating offshore West Africa.

    Close
Contact
Contact

For more information, please contact us on

offshoreenergylaw@shlegal.com