ABSTRACT
Offshore construction contracting for oil and gas projects is discussed in Chapter 6. The stringent oil company and regulatory requirements of compliance with safety, quality and environmental obligations have time and cost implications different to onshore contracting that need to be recognised by contractors. The high costs and greater risks of offshore construction result in contractors accepting less risk than their onshore counterparts. Completion on time is critical to interface with marine construction vessels previously contracted for. General features of offshore platforms and topsides are discussed with reference to the required construction equipment and the requirements of hook-up and commissioning. Floating structures may take the form of a floating production storage and offloading facility (FPSO) or a floating natural gas facility (FLNG). Contracting for FPSO facilities may involve conversion of an existing tanker or ‘newbuilding’ by a shipyard, with other contractors providing topsides facilities. Contractual arrangements may be for the supply of an FPSO to be operated by the Owner or a contractor, or a Production Services Contract in which the Contractor assumes full responsibility for management and operation at the field. Key FPSO contract issues are discussed in detail. The unique features of FLNG and floating regasification unit facilities are identified, including regulatory and classification issues. The contractual requirements for these new types of facilities are discussed.
