Sea Transport of FPSO Topside Modules: Managing the Legal Risks

Background

An FPSO conversion project between an FPSO owner and a shipyard from different jurisdictions is in progress. Under the terms of their contract, the shipyard must convert and modify a tanker into a fully classed and certified FPSO. 

The scope of work includes demolition, relocation, repairs, replacements, modifications, addition or installations of new items. 

Some examples include structural and hull modification, demolition and relocation of electrical, telecommunication, instrumentation, HVAC and piping systems, installation, integration and commissioning of modules and other items, fabrication of stools to support the modules, hull blasting, painting, disposal of scraps and others. 

Under the contract, the FPSO owner has the right to supply the topside modules specified equipment and items fabricated by other contractors. 

Separately, FPSO owner has also entered into a module construction agreement with a contractor, whose yard is located in a different locality or state away from the shipyard. When the construction of the module has been completed, the FPSO owner is obligated to take delivery of the module from the contractor’s yard. 

FPSO owner plans to transport the module from the contractor’s yard to the shipyard by sea.  The sequent of events (hereinafter called the “load-out operation”) will be as follows: (a) the module will be lifted onto a barge by a floating crane and a tug will tow the barge to the shipyard, and (b) upon arrival at the shipyard the floating crane will lift the module onto the FPSO. The planning and execution of the load-out operation is discussed below.

Planning

To ensure that the load-out operation is executed safely and seamlessly, FPSO owner will have to consider the following: 

·  What should be included in the project plan?

·  How will the module be transported to the FPSO?

·  What are the technical requirements?

·  What are the key participants’ obligations?

The project plan will be based on the following assumptions. 

The completed module is suitable for loading and unloading, lifting and sea transportation. The calculation for the pad-eye or lifting point will be revised by the module designer based on the actual weight of the fully constructed module. 

The wharf and adjacent sea depth at the contractor’s yard are suitable for mooring of barge, tug and floating crane and the lifting operation. The contractor is obligated to convey the module to a wharf at its yard for loadout by lifting. 

The wharf and adjacent sea depth at the shipyard are suitable for mooring of the FPSO, barge, tug and floating crane and the lifting operation. Installation of the modules has been factored into the FPSO conversion contract and its planned programme. The shipyard has prepared the deck of the FPSO with stools to receive the module. 

The wharves at the shipyard and contractor’s yards are approved by the local maritime authority for the load-out operation.




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