5 Contracting strategy

Depending on the worldwide economical situations, different contracting strategies (for the provision of the selected floaters) can be envisaged, as follows:

Full out-sourcing known as EPCI contract.
Split work packages to be subcontracted, e.g. (1) Engineering & Procurement, (2) Construction and (3) Installation.
Owned facilities or Leased & Operate facilities (FPSO)

The merits (& disadvantages) of above contracting strategies are outside the scope of this document.

5.1 EPCI Contractors

The following table summarizes the main contractors of production floating facilities with references in FEED/EPCm (management of EPC contracts), EPC and EPC+I (Installation) contracts:

Table 5.1 - Main EPCI & EPC Contractors

Company	FEED/EPCm	E P C	EPC+I	Website
HHI Hyunday Heavy Industry / DSME		×	×	http://english.hhi.co.kr/
SHI Samsung Heavy Industry		×	×	http://www.samsungshi.com/
KBR	×			https://www.kbr.com/
SAIPEM	×	×	×	http://www.saipem.com/
FLUOR	×			https://www.fluor.com/
TECHNIP FMC	×	×	×	https://www.technipfmc.com/
KVAERNER		×		https://www.kvaerner.com/
AKER Solutions	×	×		https://akersolutions.com/
COOEC (CNOOC)		×	×	https://www.cooecfluor.com/
MCDERMOTT	×	×	×	https://www.mcdermott.com/
SEMBCORP MARINE		×		https://www.sembmarine.com/
KEPPEL OM		×		http://www.keppelom.com/
EXMAR		×		https://www.exmaroffshore.com/
SUBSEA 7		×	×	https://www.subsea7.com/
AIBEL	×	×		https://aibel.com/en
WOOD	×	×		https://www.woodgroup.com/
HEEREMA		×	×	https://www.heerema.com/

Lease and Operate Contractors (FPSO)

Table 5.2 - Main EPCI & EPC Contractors

Company	L&O	EPC	Website
BLUEWATER	X		https://www.bluewater.com/
BW Offshore	X	X	https://bwoffshore.com/
YINSON	X		https://www.yinson.com.my/
EXMAR	X	X	https://www.exmaroffshore.com/
MODEC	X	X	https://www.modec.com/
SBM	X	X	https://www.sbmoffshore.com/
TEEKAY	X		https://www.teekay.com/
Bumi Armada	X		http://www.bumiarmada.com/
MISC	X		https://www.misc.com.my/

5.2 Main Shipyards

There are two distinct sub-systems (for fabrication) which form an offshore FPU, namely: (1) the topside and (2) the hull. These two distinct sub-systems with the mooring system drive the schedule (planning) of offshore field development (see Section Section 5.3, “Typical Development Schedules”).

Areas with large ship building industries (hulls and topsides) are in South East Asia: mainly in South Korea (3 shipyards) and Singapore (1 shipyard) with new shipyards capabilities being developed in China and Malaysia. South Korea used to be the world's largest shipbuilding nation in terms of tonnage and numbers of vessels built (all market included). Since 2017, China is the largest shipbuilding country (based on completions in gross tonnage), followed by south Korea and Japan.

The following Table presents the main shipyards and topside fabricators gathered by area:

Table 5.3 - Main Shipyards & Topside Fabricators

Company		Location	HULL	Topside	Type	Website
China
CSIC - DSIC (Dalian Shipbuilding Industry Corporation)		Dalian,	×	×	SEMI FPSO/ FPSO	http://www.dsic.cn/
CSSC	SWS (Shanghai Waigaoqiao Shipbuilding Co…) Guangzhou	Yangtse river, shanghai	×	×	FPSO	http://www.chinasws.com/
COSCO		Qidong, Zhoushan	×	×	FPSO	http://en.cosco.com/
COOEC		Qingdao	×	×	FPSO/FLNG/ Semi /SPAR	https://www.cooecfluor.com
CFHI		Zhuhai		x	FPSO	https://www.cooecfluor.com
PJOEC		Penglai	×	×	TLP/FPSO/Semi	http://www.pjoe.com.cn
BOMESC		Tianjin		×	FPSO/FLNG/ Fixed Platform	http://www.bomesc.com
QMW (McDermott)		Qingdao,		×	FPSO/FLNG	http://www.mcdermottwuchuan.com/
CPOE		Qingdao		×	FPS	http://cpoe.cnpc.com.cn
CMHI (China Merchant Heavy Industry)		Nanshan Guangdong	×	×	FPSO	http://www.cccme.org.cn/
CIMC Raffles		Yantai,	×	×	FPSO	http://www.cimc-raffles.com/en
WISON	Nantong Yard	Jiangsu		×	FLNG/Semi/ FPSO/ FSRU / FLNG	http://www.wison.com/en
WISON	Zhoushan Yard	Shanghai	×	×	FLNG/Semi/ FPSO/ FSRU / FLNG	http://www.wison.com/en
South East Asia
SHI (Samsung Heavy Industries)		Geoje Korea	×	×	FPSO/TLP/ Semi/FLNG	http://www.samsungshi.com
HHI (Hyundai Heavy Industries) /DSME		Ulsan Korea	×	×	TLP/Semi/ FPSO/FPU	http://english.hhi.co.kr
Aibel		Laemchabang Thailand		×	FPSO/ Platforms	https://aibel.com/en
Keppel Offshore & Marine	Tuas Pioneer	Singapore		×	FPSO/FSO/TLP FLNG/FSRU	http://www.keppelom.com/
MMHE(Malaysia Marine & Heavy Engineering) West		Pasir Gudang, Malaysia	×		FPSO/FSO	http://mhb.com.my
MCDERMOTT		Batam, Indonesia	×	×	FPS	https://www.mcdermott.com
SAIPEM		Karimun, Indonesia		×	FPSO	http://www.saipem.com/
PTSC		Vietnam		×	FPSO/semi/	https://www.ptsc.com.vn/en/
SembCorp Marine	Tuas Admiralty Karimun Pt (SMOE) Batam	Singapore Singapore Karimun Batam	×	×	FPSO/FSO/ Semi	https://www.sembmarine.com/
EUROPE
Kvaerner		Stord, Verdal, Norway	×	×	FPSOs/Semi/TLP	https://www.kvaerner.com/
Heerema		Hartlepool UK Vlissingen Netherlands		×	FPSO	https://hfg.heerema.com/
Dragados		Cádiz yard Algeciras , Spain	×	×	FPS/Semi-Sub/Buoys	http://www.dragadosoffshore.com/
Rosetti Marino		Piomboni Yard, Italy		×	FPS	http://www.rosetti.it/
Aibel		Haugesund, Norway	×		FPSO	https://aibel.com/en
Saipem		Airbatax, Italy		×	FPSO	http://www.saipem.com
GOM/US
Gulf Island Fab		Louisiana, US	x	×	FPS	https://www.gulfisland.com/
MCDERMOTT		Morgan City, Louisiana, US		×	FPS	https://www.mcdermott.com/
Kiewit		USA		×	Semi / FPSO	https://www.kiewit.com/
Ingleside ( Subsea 7)		Texas, USA		×	FPSO	https://www.subsea7.com
Dragados		Altamira, Tampico Mexico		×	FPSO	http://www.dragadosoffshore.com
Brasil
BrasFELS (Keppel O&M)		Angra dos reis Rio de Janeiro,	×	×	FPU/FPSO/ Semi-sub	http://www.keppelom.com
Estaleiro Jurong (Sembcorp Marine)		Aracruz,Brazil	×	×		https://www.sembmarine.com
Odebrecht		Rio de Janeiro,		×		https://www.odebrechtengenharia.com/en/
Middle East
McDermott		Djebel Ali, Dubai	×	×		https://www.mcdermott.com
Larsen & Toubro		Zubair, Oman		x		http://www.larsentoubro.com
Dubai Drydocks World		Dubai, UAE		×		http://www.drydocks.gov.ae
AFRICA
Paenal DSME		Angola		×		https://www.paenal-yard.com/
SHI-MCI fze ( Ladol)		Nigeria		×		http://www.shi-mci.com/

The following Figure 5.1, “Samsung Heavy Industries – Geoje Shipyard (South Korea)” and Figure 5.2, “Hyundai Heavy Industries Co. Ltd. (South Korea)” show the size and a general view of two major shipyards in South Korea.

Figure 5.1 - Samsung Heavy Industries – Geoje Shipyard (South Korea)

Figure 5.2 - Hyundai Heavy Industries Co. Ltd. (South Korea)

Figure 5.3 - Technip Mantyluoto (SPAR) Shipyard Pori (Finland)

5.3 Typical Development Schedules

The following Tables present typical development schedules for the main FPUs, and for preliminary evaluation at conceptual phase and study. Such schedules will depend greatly on the worldwide economic status and demands for steel, energy, transportation and resources availability.

Figure 5.4 - Typical FPSO Execution Schedule (see notes)

Note

FPSO main characteristics provided here after: FPSO newbuilt or conversion at Contractor standards

Process Capacity: 100-150 kbopd
Topsides Weight: 30 000 tons (Operating)
Storage Capacity: 1.5 M barrels
Displacement: 300 000 tons

Theses schedules will depend greatly of the EPC contract strategy.

In case of a Basic Engineering followed by a Call for tender and an EPC contract awarded to a yard contractor (South Korea, China), more time is needed for detail engineering and procurement before to start topside fabrication and overall schedule is significantly extended

The following Table presents typical FPSO execution schedule with yard contractor

Figure 5.5 - Typical FPSO Execution Schedule (see notes)

Note

FPSO main characteristics are provided here after: Newbuilt FPSO by EPC Yard Contractor

Production Capacity: 200 Kbopd
Topsides Weight: 45 000 tons (operating)
Storage Capacity: 1.8 M barrels
Displacement : 380 000 tons

Figure 5.6 - Typical TLP Execution Schedules (see notes))

Note

TLP main characteristics provided here below:

Topsides: 10 000 tons (full drilling)
Well Count: 20
Displacement: 40 000 tons
Water Depth: 1000m

Figure 5.7 - Typical Semi-Submersible Execution Schedule (see notes)

Note

Semi main characteristics (typical):

Process Capacity: 80 kbopd
Topsides: 10 000 tons
Displacement: 50 000 tons

Figure 5.8 - Typical SPAR Execution Schedule (see notes)

Note

Spar main characteristics (typical):

Process Capacity: 80 kbopd
Topsides: 16 000 tons
Displacement:60 000 tons

5.4 Transportation & installation

5.4.1 General

The global nature of the offshore oil & gas industry calls for heavy maritime transportation & lifting means for moving large equipments such as hulls or topside modules.

The following Sections present an overview of the Transportation Vessels and Heavy Lift Vessels commonly used for the platforms and floaters transportation and installation.

Refer to ( – Offshore Reference Book) for further technical descriptions of the Transportation Vessels and Heavy Lift Vessels.

5.4.2 Transportation Vessels

Such transportation means from one continent to the other (e.g. TLP hull fabricated in Asia with final fitting of process topsides in the Gulf of Mexico) require large deck load, fast loading, transit and offloading capabilities.

A number of transportation vessels are available and can be categorised in two main groups:

Semi-submersible vessels
Ship shaped vessels plus craneage capabilities

The semi-submersible vessel disposes of sophisticated ballast system to float-on & float-off typical floating hulls, such as semi-submersible rigs, TLP, FPU and SPAR hulls, see following Figures.

Figure 5.9 - Dockwise ‘Vanguard ’ – MOHO NORD FPU Transportation

Figure 5.10 - Dockwise ‘Mighty Servant 1’ – Thunder Horse Semi-Submersible Transportation

For other smaller equipments (e.g. topside manifolds, mooring reels, subsea foundations) it is preferable (economic) to use the ship+craneage capabilities (Figure 5.11, “Jumbo ‘J1800 class’”), especially in remote area where quay facilities are un-sufficient with crane capacities in the 500T-1000T range.

Figure 5.11 - Jumbo ‘J1800 class’