Case Study

Dispute Resolution Support for an FPSO

Client

A Far East based company, the owner of an FPSO (Floating Production, Storage and Offloading Vessel), was upgrading its asset for providing operations services to a major client in the Middle East.

Location

Far East

Summary

Our client had reached the dispute stage with an operator and production was at risk of being delayed. The dispute was centred around the material selection suitability for the FPSO processing equipment. OGC Energy's technical expertise allowed the dispute to be settled without compromising first oil dates.

Challenges

A Middle East operator had contracted an FPSO for operations in a highly sour field. The FPSO owner upgraded the topside facilities to accommodate the sour production but a dispute ensued regarding the material selection. Oilfield production with H2S is considered “sour”. It can accelerate corrosion and lead to stress corrosion cracking; a sour hydrocarbon release not only results in loss of production but can also be a fatal risk to human life. The oilfield operator disputed the material selection as it was considered not fit for purpose for the sour conditions. This dispute could have resulted in first oil being delayed with severe financial implications for everyone. The FPSO owner requested OGC Energy's technical support to offer an objective expert view on the material selection.

How Our Expertise Helped the FPSO Operator

OGC Energy expertise in sour service is recognised worldwide. Ivan Gutierrez, Managing Director of Oil & Gas Corrosion is a recognised expert in sour service and a member of Task Group 299 on Oversight of Maintenance Panel for NACE MR0175/ISO 15156 and IOGP 15156 committee ISO/TC 67/WG 7 (Corrosion resistant materials).


Ivan led the Oil & Gas Corrosion team to carry out an in-depth review of reservoir conditions and the material selection for the FPSO topsides facilities; this review was translated into a report that presented the case, based on technical evidence, that showed the material selection was fit for purpose for the sour oilfield. The operator accepted this evidence and first oil was achieved. The FPSO is currently in operation with no reports of failures.

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