09 Apr

Fpso Agreement

The first FSO in the Gulf of Mexico, the Ta`Kuntah FSO, has been operational since August 1998. The FSO, which is owned and operated by MODEC, is subject to a service agreement with PEMEX Exploration and Production. The ship was installed as part of the development of the Cantarell field. The field is located in Campeche Bay, opposite the Mexican peninsula of Yucaten. It is a refurbished ULCC tanker with a SOFEC outdoor tower mooring system, two flexible climbs connected in a Lazy-S configuration between the tower and an end-of-pipe dispenser (PLEM) at the bottom of the ocean, and a single unloading system. The FSO is designed to handle 800,000 bbl/d (130,000 m3/d) without extra downtime. [20] On July 29, 2009, Shell and Samsung announced an agreement to build up to 10 LNG FPSOs[7] on the same Samsung Yard Flex LNG. [8] Nexus also reports that it entered into a transaction agreement with Viking (formerly Vanguard) Oil and Gas International and Viking Shipping after the closing of a Memorandum of Understanding (MOA) for the supply of an FPSO for the Crux Liquids project, signed in 2007. Unless clear contractual conditions are established, it is dangerous for the parties to consider that an insurance underwritten by a party that qualifies all parties as co-insurance will take care of everything. Under English law, the parties cannot consider that an agreed common appointment insurance would automatically create an insurance-funded liability scheme that would exclude the parties` right to seek each other for negligence or breach. If the parties expect the insurance to respond to certain events to the exclusion of other rights between the parties, this agreement must be clearly stated in the contracts.

The contract form may already have standard knock-for-knock compensations, which are simply retained by the parties, without appreciating that this standard distribution of property damage may be contrary to what the parties believe could occur in the event of equipment deterioration. A potential layer of additional uncertainty arises when there is more than one insurance underwritten by different parties and there is no contractual agreement on the response to the actual event. Nexus Energy has signed an agreement with Single Buoy Moorings to open exclusive negotiations on the integrated construction, supply and operation of the FPSO project for raw liquids. This article focuses on the typical contractual problems encountered during the construction and installation phase of an FPSO project. However, the article does not focus on the contract between the shipyard and the owner of the FPSO. There are several contracts that are generally included in the broader FPSO leasing/chartering model. all of which are relevant.