ABSTRACT
Chapter 1 discusses the unique features of offshore oil and gas production facilities, and the risks inherent in their development. It provides an overview of the steps involved in developing oil and gas projects, generally following the stages of project development and shows the process and context in which such project development takes place: project identification, project planning, concept report, detailed design and procurement, fabrication and construction, commissioning and ultimate decommissioning. The technical considerations of offshore oil and gas projects are reviewed – floating production systems, offshore platforms and subsea facilities. The context of oil and gas construction and related contracts is a licence or agreement with the government which the Operator, its Joint Venture Partners and its construction contractors must comply with. Project identification and evaluation must consider a plethora of contractual and technical issues before the Final Investment Decision is taken. Risk allocation and insurance requirements for offshore contracts are significantly different to those in onshore contracts, and require robust risk management. An independent project review may be necessary for a troubled project. International contracting requires consideration of issues such as the governing law of the contract and dispute resolution alternatives. Variations are the norm and must be appropriately managed.
