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OE: What’s the greatest challenge facing FPSOs? Mexico be the next big area for FPSOs?

Wodehouse: Ensuring that, even with the pressure to reduce Wodehouse: The opportunity for the use of costs, the increasingly complex FPSOs of the future are deliv- FPSOs in the deepwater offshore Mexico is ered on time and on budge, and are capable of being operated in tremendous, and although that market has a safe, reliable manner. been slower to develop than we all hoped

Crager: Cost overruns and delayed delivery are clearly issues for, the resource appears to be there and the in the industry and many FPSO projects have suffered from FPSO industry has the capability to meet these type of problems. Operators and FPSO leasing companies the challenges, so it will happen, the ques-

Jim Wodehouse have tried various commercial and delivery models to over- tion is how soon.

come these issues. Unfortunately, there have been a number of Crager: I presented an overview of FPSOs in Mexico at last companies who have converted FPSOs but had no prior experi- year’s Global FPSO Forum based on the current and planned ence so they are more likely to have problems than the more FPSO activities at that time. Little has changed. There are still experienced contractors. several FPSO projects under consideration by Pemex, such

The basic practices of large projects still apply to FPSO as the large FPSO and the extended well test FPSO for the projects and when followed, will help avoid cost and

Ayatsil Tekel ? eld. In addition, the deepwater lease areas that delivery problems. These basic principles include rigor- are expected to be offered later this ous engineering before starting construction, 3D model- year should be logical locations for

The Global FPSO Forum ing, minimizing changes, ordering long lead items as soon

FPSOs if they are found to be of returns to Galveston, as possible, and working with experienced contractors. commercial interest. 15-17 September 2015.

Functional vs. company-generated speci? cations can also

The technology issues I men-

Visit globalfpso.com to help minimize cost and delivery problems. Standardization tioned above will be important ? nd a list of speakers and is being promoted, but the industry, particularly the larger to FPSO development in Mexico, conference agenda.

operators, often stay with their own speci? cations and prac- including heavy oil processing, tices as opposed to more standardized industry guidelines/ dealing with H S and CO , and 2 2 disconnectable moorings due to hurricanes. Mexico could be requirements.

a major area for FPSOs, but having other operators come into

OE: With the opening of Mexico’s energy market, what is the

Mexico under the new leasing program will be an important outlook for FPSOs in this sector? At last year’s Global FPSO step. These new operators will bring funding, active exploration forum, Crager said with regards to deepwater development that programs, and are likely to have experience with FPSOs from there is a need for this technology. What’s your take now? Will other parts of the world. oedigital.com September 2015 | OE 33 030_OE0915_Feat2_Board.indd 33 8/21/15 8:53 AM