In late April, we bought together twenty companies from across the FPSO supply chain to identify challenges and solutions for this sector. In a facilitated round table format, representatives from operators, FPSO contractors, EPCs, equipment manufacturers, and shipyards discussed the issues openly and suggested these solutions to FPSO development:
- Fewer specifications: “We don’t need all the specs on these units. [Rather] we need to define what success is for the project” – FPSO Leasing Contractor
- Clearer supply chain relationships: “We don’t want customers coming to us with a design from an engineering house and asking us to build it.” – FPSO Leasing Contractor
- More standard designs and equipment: “There’s a lot more you can standardize on an FPSO than simply components” – Major E&P Company
- Better relationships between contracting parties: “Some of the majors are going in the right direction – Shell and BP are implementing frame agreements. Chevron is also moving in the right direction” – Shipyard
- FPSO contracts: “We need to work together in a more constructive environment. We don’t want the industry to be a fight and a scuffle” – Major E&P Company
- Longer bidding deadlines: “Competition is important but timelines are unrealistic. They’re so short and it’s impossible to base bids on loose data” – Equipment Supplier
- Increase proportion of company employees: “There are many contractors that are not affiliated with the company – they switch jobs frequently. The industry needs more permanent employees” – Equipment Supplier
- Appropriate local content: “The problem is when you don’t have enough information [on local requirements, and need] to get more before you commit. It’s a lack of knowledge that’s the problem” – FPSO Leasing Contractor
Our thanks to the participants for your help in this effort. Please call or email if you would like a detailed summary of the findings from this engaging and informative industry round table.
R. Michael Haney, Douglas-Westwood Houston
+1 713 385 2588 or [email protected]
