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FPSO CONVERSION Legal Risks in Associated Contracts David Seah, LL.B London [email protected] www.s hipyardlawyer.com 22 April 2015 6 th Annual FPSO POST CONFERENCE WORKSHOP

FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

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Page 1: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

FPSO CONVERSION Legal Risks in Associated Contracts

David Seah, LL.B [email protected] April 2015

6th Annual FPSO POST CONFERENCE WORKSHOP

Page 2: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Page 3: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Introduction

David Seah

Page 4: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Imagine…

David Seah

Page 5: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Topside Modules

ProductionPower Generation Process SystemStabilization &

UtilitiesGas Compression

FPSO - Main Components

Topside Modules

Main Deck & Helipad

Equipments & Machineries

HVAC, Pipes, E & I System

Turret & Mooring S Systems

Accommodation Topside Modules

David Seah

Page 6: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Gearing Up For Success

Project Execution

Plan

Legal Risk Matrix

Operation Plan

David Seah

Page 7: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Trivia Questions

1. How many key players are involved in a typical load out operation?

2. Who are they?

David Seah

Page 8: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

OWNER

Marine Warranty Surveyor

Heavy Lift Consultant

Module Designer

ShipyardModules Fabricators

Floating Crane

Barge & Tugs

David Seah

Page 9: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Legal Risk Matrix

David Seah

Page 10: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

“Every battle is won BEFORE it is

fought”.

Sun Tzu

David Seah

Page 11: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Associated Contracts

Main FPSO Conversion

Modules Designers

Heavy-Lift Consultants

Floating Crane Operators

Modules Fabricators

Tug and Barge Charterparty

David Seah

Page 12: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Activity 1

Legal Risk Matrix

(See Handouts)

David Seah

Page 13: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

“Invisible” Legal Risks

David Seah

Page 14: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Interactive Activities

David Seah

Page 15: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Recap of Invisible Legal Risks

Risk 1 - Mediocre legal advise or amateur contracts

Risk 2 - Internal contracting guidelines

Risk 3 - Mismanagement of communications

Risk 4 - Record Keeping

Risk 5 - Management of Disputes

Risk 6 – Litigation Readiness

David Seah

Page 16: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

BLIND SPOTCheck

David Seah

Page 17: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Load Out Sequence & Legal Risks

David Seah

Page 18: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Modules Fabricators fabricates and brings the modules to the quayside at its yard (Point A).

David Seah

Page 19: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Floating crane lift modules from the Modules Fabricators’ wharf and load them on a Barge.

David Seah

Page 20: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Lashing and sea fastening of the modules on the Barge.

David Seah

Page 21: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Tug boats tow the Barge via sea transportation from Point A to FPSO at Point B.

David Seah

Page 22: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Upon arrival at alongside the4 FPSO at Point B – unweld sea fastening and prepare for offloading.

David Seah

Page 23: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Floating Crane lifts modules in sequent onto the FPSO.

David Seah

Page 24: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Project Execution Plan

David Seah

Page 25: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Key Players Pre-Qualification Work Scope Load Out

Operation

Who What How When

David Seah

Page 26: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah

Activity 2 – Project Execution Plan

David Seah

Page 27: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

Introduction

Legal Risks Matrix

Invisible Legal Risks

Load Out Sequence & Legal Risk

Project Execution Plan

1

2

34

5

Recap on Today’s Agenda

David Seah

Page 28: FPSO Conference Workshop - Legal Risks in FPSO Conversion & Associated Contracts

David Seah, LL.B [email protected]

22 April 2015