Why is FPSO so important to oil & gas companies?

Conceptually,FPSOs have given oil and gas companies great freedom and flexibility with regards to exploration and extraction. FPSOs enable companies to produce oil and gas more cheaply  than traditional offshore oil and gas production and storage,and it can explore increasingly remote areas.

FPSO Floating Production Storage and Offloading

There are the advantages of FPSO (Floating Production Storage and Offloading):

1. FPSO saves time – FPSO can be connect to any pipeline.Moreover,when an existing oilfield is depleted,and FPSO can be moved to elsewhere.This saves time and money and reduces the need to build expensive permanent pipelines and facilities.As such,FPSO provides an ideal solution for smaller oil and gas fields that will be depleted in a few years.

2. FPSO reduces the cost – With FPSO,O&G companies do not need to build permanent structures like pipelines and piled buildings. FPSOs have the ability to store processed oil and gas and unload it to shuttle tankers for transport t refineries.

Costs for a traditional offshore oil platforms could soar when other expenses such as maintenance, completion costs and platform decommissioning are taken into account.

3. FPSO is safety – FPSOs can be disconnected from the pipelines and oil wells that are fixed to it.This makes FPSOs a safer choice in inclement weather conditions.

4. FPSO is convenience – FPSOs are leased by oil producers.First,oil producers could lease the vessels, giving oil and gas companies more flexibility in asset management and ensuring they are responsive to market forces.Second, oil companies can better manage their balance sheets with leases.This not only saves costs but it bridges the gap between small and large oil and gas organisations, ensuring healthier competition.

5. FPSOs can be used in more viable fields – Some oil and gas fields are commercially unviable because of weather hazards,long distances to the shore,or the high cost inefficiency of building and maintaining traditional infrastructure. FPSOs are suitable for a wide range of water depths, environmental conditions and can be designed with the capability of staying on location for continuous operations for 20 years or longer.

6. FPSOs have storage capabilities – FPSOs can store large amounts of oil and gas,increasing the commercial viability of hard to reach field.

This greater flexibility and versatility makes FPSOs the preferred offshore production method in the oil industry today.

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