The Challenges and Opportunities of FPSO Relocations

Abstract The first FPSO relocation project was completed 18 years ago (SBM's FPSO II), and since that time there has been a steady rise in the number and complexityof relocation projects being executed. Existing FPSO's are now being relocatedto fields with heavier oil, higher CO2 and H2S content, and increased waterdepths. More than 20 existing FPSO's are expected to become candidates forrelocation over the next 5 years, increasing the importance of this type ofproject to the industry. This paper will examine the key technical issues to be considered in relocatingan FPSO, drawing particularly on the experience of two recent SBM Offshoreprojects in Brazil - the relocation of the FPSO Capixaba to the Cachalotefield, and the relocation of the FPSO Espadarte to the Baleia Azul field. The paper will address the implications and applicability of changes in Rulesand Standards, possible approaches to the survey and assessment of assetintegrity prior to relocation (hull, topside and mooring), and the scope ofdesign modifications that may result from changes in reservoir data. The keysuccess factors in the project management and execution of relocation projectscompared to a traditional FPSO conversion will also be discussed. The paper aims to give feedback on issues and solutions, and to identify thekey factors that need to be addressed for the successful relocation ofFPSO's. Introduction Since the early days of the FPSO industry, the possibility to relocate a unitafter its initial contract has been regarded as one of the advantages of thistype of production system. The industry's second ever FPSO, SBM's FPSO II, wasthe first unit to be relocated after an initial 11 year deployment, and thisFPSO was subsequently relocated a further two times. The possibility to relocate an FPSO allows operators and contractors to assumea residual value for the unit at the end of the initial deployment, avoidingthe need to amortize the full cost of the unit over the initial lease period. This characteristic allows FPSO's to be offered at competitive rates forrelatively short lease periods, providing a viable solution for marginal fieldsand early production systems. Exploiting the flexibility of FPSO's, the industry has seen a number of unitsbeing relocated after completion of their initial contract. The complexity ofthese relocations has varied depending on such factors as the flexibility ofthe initial design, the production requirements and metocean conditions at thenew field, and changes in regulatory requirements between the twodeployments. Over the last 3 years, the industry has seen 7 FPSOs relocation projects, including SBM's Capixaba and Espadarte FPSOs, and the continuing growth of theindustry suggests that the trend for relocations will continue. The presentworld fleet of FPSO's comprises approximately 150 units [ref 1[, of which over20 are possible candidates for relocation during the next 5 years.