Offshore Floating Production

Edited by Stuart Beadnall; Simon Moore; Max Lemanski

Document

Page 275

Index

adjudication 13.8–9, 13.36
arbitration 13.19–21
- agreements 4.122
- appeals 13.31–32
- commencement of 6.34, 13.22–23
- fees 13.24
- procedure 13.9, 13.25–30
arrest and/or detention 4.119–122, 4.128–134, 7.12
assignment (of contractual burdens) 1.42–45, 6.18, 10.26, 10.40, 11.61
Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, The 12.41–43, 12.50
CAPEX/OPEX 6.2–4, 232
centre of gravity (COG) 2.26–28, 240
charterparties
- amendments 2.39–40
- assignment of 1.45
- contract forms 1.28–29
- definition 1.23–25
- delivery into 5.1–4
- design process link 2.36–38
- liabilities and indemnities 1.58
- long-term charters 7.55–56
- notice requirements 2.41–49
- offtake and uploading 1.59
- O&M contract split 8.56
- period of 1.56–57, 5.35–38
- redelivery 5.39–44
- short-term charters 7.57–58
- structures 1.30–36, 1.40–41, 1.49–50
- voyage charters/COAs 7.59
“conditions of use” agreements 8.57–62
construction contracts
- acceptance under 3.22–23, 5.5–8
- commissioning 3.20–21
- defects rectification 3.28–30
- price and payment terms 3.17–18
- provisional acceptance 5.31–33
- scope of work 3.15–16
- technical requirements 3.6–8
- termination rights under 3.25–27
- testing 3.24, 5.23–30
- variations 3.19
contractual interpretation
- agreement to agree 13.16–17
- doctrine of mistake 6.74–81
- general rules of 1.27, 4.27, 6.69–71, 262
- of indemnity clauses 8.13, 8.63
- parole evidence rule 6.77fn28
- of technical documents 3.6–8
- of termination rights 11.16–19
- see also duty of good faith
- variations to contract 2.95, 4.71
- worked example clauses 6.72–73, 6.82–88
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 (the “London Convention”), The 12.47–48
Convention for the Protection of the Marine Environment of the North-East Atlantic (“OSPAR Convention”), The 12.37–40
conversion contracts
- acquisition of vessel for 4.11–17
- carry-over agreements 4.101–117
- commissioning 4.96–98
- delivery of vessel to yard 4.31–34
- design process 4.18–19
- disputes 4.23–30
- vs. newbuild projects 4.7–10
- pricing of 4.35–37
- redelivery and sailaway 4.118
- reimbursable work 4.51–53
- remeasurable work 4.45–50
- target sum pricing 4.54–63
- termination rights 4.99–117
- unit rates 4.38–43
- unpriced scope 4.44
- work process 4.20–21
- see also fitness for purpose
day rates 5.35–37, 6.5–6
- deductions from 6.12–14
- during downtime/suspension of production 6.16–19, 6.21–22, 6.25, 6.28, 6.53–54, 7.42–43, 7.52
- during dry docking 6.30–31
- excess costs 6.8–9
- in case of force majeure 6.7, 6.23–24
- obligation to pay in general 6.15–16, 6.20
decarbonisation 1.61–68, 4.5, 10.35, 10.50
decommissioning 12.1–4
- disconnection and removal 12.5–13
- domestic legislation 12.63–67
- EU legislation 12.49–62
- international legislation 12.35–48
- removal, dismantling and disposal of subsea facilities 12.19–28
- reputational risks of 12.29–34
- stages of 12.3
- well plugging and abandonment 12.18
defects
- case study concerning 257–258
- compensation for 3.30
- design defects
  
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  2.16–22, 2.31, 2.41, 2.53–56
- insurance for 9.10, 9.29, 9.40, 9.43, 9.47–55
- late discovery of 2.41, 2.45, 4.21
- notice of 2.45–47
- rectification of 3.28–30, 4.136, 5.6, 5.9, 5.12, 5.28, 5.31
- termination for 5.28–29
delay
- bad weather 2.23–25
- case study (conversion) 4.79–89
- charter delay 1.56, 7.59
- concurrent delay 4.90–95, 5.24
- damages for 2.39, 4.53, 4.104, 4.123, 5.15–16, 5.19–22, 6.17, 8.36–37, 11.45–47
- “delay in start-up” insurance 9.12–14
- design changes 2.28, 2.30, 2.33, 2.39, 2.46–49
- in invoice submission 6.44
- notification of 2.47–49
- in production commencement 6.29
- in sub-contracts 2.47–48, 5.14
- termination for delay 11.12, 11.48–52
- to vessel arrival 4.33–34, 5.15–16, 5.21–22, 11.45–49
- see also liquidated damages
demurrage 7.11–13, 7.59
- FDD insurance 9.34
design development process 2.9–16
design disputes 2.8, 2.17–28, 2.34–38
design integration 2.50–51
- allocation of design risk 2.52–56
- handover design 2.59
- interface design 2.58
- separate hull and topside yards 2.57
design responsibility 2.6–8, 2.12
detention and/or arrest 4.119–122, 4.128–134, 7.12
duty of good faith 2.39, 11.16–19
- Braganza duty 11.20–32
- relational contracts 11.33–41
EU Waste Shipment Regulations 1013/2006 12.50–53
expert determination 4.107, 13.2–7, 13.9
FEED (Front End Engineering Design) 2.7, 2.10–12, 233–236
- bid process 233–234
- changes to 2.29
- intellectual property in 10.18, 10.23–24, 10.31, 10.34
- post-FEED engineering 236
- pre-FEED stage 233–234
fitness for purpose 2.25, 2.60–61, 4.22–30, 5.30, 9.28
flaring 2.71–74, 8.24–25, 216, 230, 232, 238, 240
FLNG 1.20–21, 7.45, 7.52, 225
- charters 5.27
- offloading 1.59, 255–256
- operational units as of 2021 226
- technological development 228
- vessels 226–228
fluid transfer systems 248–249
force majeure 4.33, 6.7, 6.12, 6.23–24, 6.31, 7.13
- termination for 11.7
FPSO units
- advantages and disadvantages of 232–233
- contract structures 1.30, 1.40–41
- definition 1.6–1.22
- design and construction 1.51, 233–237
- historical development of 211–215
- installation and acceptance 1.52
- jackups and bottom-fixed platforms 216–218, 229–230
- late arrival 11.43–52
- mobile production unit types 215–216
- operational efficiency of 243
- power generation onboard 241
- production 1.53–55
- production difficulties 11.53–56
- regulatory compliance 237
- semi-submersibles 218–220, 229–230
- Sevan type 222–224, 229–230
- spar 220, 229–230
- sub-contracting 1.37–38
- tension leg platforms 220–222, 229–230
- testing of 242
FSRUs (Floating, Storage and Regasification Units) 1.7, 224–225
gas compression and treatment 4.96, 215, 230, 232, 238–242
guarantees
- jurisdiction 13.33
- primary or secondary obligation 4.135–144
- variation of underlying contract 4.145
hire 5.35, 5.39, 6.14
- deductions from 6.12–13, 6.15–18, 11.68
- performance adjustments to 6.56–59, 6.88
Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, The 12.44–46
hydrogen 1.62, 1.68, 4.5
indemnities 8.1–4
- for consequential loss 8.32–35, 8.38–39 (see also “conditions of use” agreements)
- for demurrage 7.11–12
- force majeure 7.13
- for gross negligence and wilful misconduct 8.42–48
- intellectual property 10.43–46, 10.49
- interpretation of indemnity clauses 8.63 (see also knock-for-knock)
- personal injury/loss to life 8.5–6
- pollution 8.22–25
- property damage 8.7–10
- third party claims 8.11–21
insurance
- business interruption/loss of production income policies 9.15–18
- construction all risks (CAR/WELCAR) policies 9.7–11
- delay in start-up policies 9.12–14
- exclusion from 9.58
- FPSO/property insurance 9.36–55
- freight, demurrage and defence insurance 9.34
- hull and machinery 9.19–21
- kidnap and ransom 9.35
- loss of hire 9.24
- operational liabilities 9.58
- operators’ extra expense/energy exploration and development/control of well policies 9.2–6
- protection and indemnity insurance/specialist operations 9.25–33
- strike insurance 9.23
- upgrades, life extension works and/or modifications 9.56–57
- war risks 9.22
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intellectual property
- background/foreground IP 10.20–26
- confidential information/trade secrets etc. 10.11–19
- copyright 10.10
- design registration 10.8
- infringement 10.42–50
- insolvency of IP licensor 10.39–40
- licensing of 10.27–38
- licensing alternatives 10.41
- patents 10.7
- trade marks 10.9
invoicing 4.52–53
- procedures 6.32–34
- risks in failing to follow procedure 6.35
- time bars 6.36–44
knock-for-knock 1.58, 8.27, 8.45, 8.59, 9.26, 12.21
liability 1.58
- for condition of vessel for conversion 4.11–17
- for consequential loss 4.129–134
- decommissioning 12.66–67
- for design inaccuracies 2.15, 2.53–56
- no-fault regime 8.2–3
- to sub-contractors 2.44
- for termination consequences 3.26
liens 1.48, 4.119
- contractual liens 6.49–52
- waiver of 4.124–127
limitation of liability
- caps on liability 4.86, 8.49–52
- for consequential loss 8.32–39
- for downtime 6.53–55
- for personal injury/loss of life 8.5–6, 8.11–21
- for pollution 8.22–31
- for property damage 8.7–21
- time bars 6.37
- for wreck removal 8.40–41
liquidated damages 2.39, 4.85–86
- carry-over agreements 4.104–105
- for concurrent delay 4.90
- delay to acceptance tests 5.23–24
- delay to arrival at site 5.15–22
- delay to production/off-loading 5.33, 7.7
- late arrival at field 11.44–49
- for off-spec product 7.23–27
litigation (English High Court) 13.33–38
local regulations, compliance with 1.38–39, 2.57, 2.67–74, 11.38
logic contracts 5.21fn14, 8.1, 8.36
- decommissioning 12.20, 12.27–28
- indemnity clauses 8.39
- well plugging and abandonment 12.18
LPG
- floating LPG offtake 225–226
- floating LPG production 226
maintenance allowance 2.96–98, 6.25–31
malus 1.41, 6.57, 6.63, 6.65
mediation 13.10–11, 13.11fn8, 13.13, 13.17
mooring systems
- changes to 2.87
- commissioning phase of 4.97
- design of 2.52, 2.55–56
- development of technologies 213–215
- disconnectable mooring systems 222, 245
- expense of 221
- functions of 243–244
- intellectual property in 10.3
- limits on excursions 235
- location of 225, 228
- mooring methods 249
- operation of 7.33
- removal from field 12.3, 12.6
- spread mooring 218, 222, 244, 251
- tandem mooring 250–253, 255
- turrets 10.18, 236, 245–247
- weathervaning 222, 244–248, 250, 252, 256
mortgages 1.12, 1.46–48, 10.26, 12.66
non-payment claims 6.45–48
novation 1.42–45, 1.47, 6.48
offloading/offtake 1.7–11, 1.18–20, 1.59, 7.1–5
- capability 1.51, 7.6–8
- DES sales 7.61
- equipment 253–254
- FOB/CIF sales 7.60
- key considerations 249–250
- LPG and LNG offloading 255–256
- offtake vessels 7.53–54
- performance 7.9–13, 1.53
- problems 2.23–25
- production targets 11.54–58
- quality 7.14–27
- via remote loading buoy 253
- responsibility for operations 1.23, 7.30–40
- scheduling 7.45–52
- short-loading 7.28–29
- from spread-moored FPSO 252–253
- suspension of offloading 7.41–44
- to tanker 253
- tests 5.26
- from weathervaning FPSO 250–252
oilfields 4.97
- inspectorate 3.19
- operator 7.49
- ownership of 1.32–33, 1.36
- proportion of gas in 230
operation and maintenance (O&M) contracts 1.24, 1.30–31, 1.40, 2.9, 4.55, 5.4
- intellectual property 10.31–33, 10.36
- remuneration 5.32–33
- split with charter 6.3, 6.13–14, 8.56, 11.68
- termination of 11.68
Petroleum Act 1998, The 12.33, 12.63–67
pollution 1.12fn10, 7.30, 8.22–31, 8.50, 8.59, 12.1, 12.21–22
- insurance against 9.2–5, 9.11, 9.25, 9.29, 9.58
- see also Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 (the London Convention)
preliminary design work 2.6–7, 2.11–13, 2.26, 2.29, 2.34–35, 2.55–56, 4.18
purchase options 4.55, 11.64–69
reservoir characteristics 4.2, 5.34, 229
sailaway 4.99, 4.118, 5.9–10
- transportation to field 5.11–14
- see also detention and/or arrest
Ship Recycling Regulation 1257/2013 12.12, 12.58–62
stand-by rate 1.56, 2.96, 5.15, 6.6, 6.21–22, 7.43
subcontracting 1.4, 1.37–38, 1.41, 2.5
- acceptance 1.52
- claims 2.41–44, 2.47–49
- design 1.51, 2.7, 2.34–35, 2.39, 2.69
- disputes 5.8, 13.6, 257–258
- indemnities 8.6, 8.17
- intellectual property 10.32–33
- legal nature of a sub-contract 3.9–14
- risk/responsibility allocation 2.54–56, 3.3–5, 3.8,
  
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  4.52–53, 5.12, 5.14, 6.8fn2
- step-in rights 11.60–61
- see also variations to contract
terminal conditions of use (COU) 7.34, 7.60
termination 11.1–4
- case studies 11.42–56
- of charterparty 5.37–38, 6.15, 6.43fn15, 6.46–47, 7.54, 11.67
- common law rights of 11.13–15
- for convenience 11.10–11
- of conversion contracts 4.99–117
- for default 11.8–9
- for delay 2.31, 2.38–39, 4.79–89, 5.23, 11.12
- disadvantages of 3.25–27
- effect on other contractual terms 11.57–58
- express rights of 11.5–12
- for force majeure 6.24, 11.7
- of IP licence 10.39
- for late arrival 11.43–52
- loss/retention of termination rights 5.1, 5.31, 5.33
- other effects of 11.59–63
- for production difficulties 11.53–56
- and redelivery 5.44
- restriction on termination rights 11.16–19
- see also duty of good faith
tiered dispute resolution options 13.12–17
topsides
- centre of gravity 2.26–28
- commissioning of 241–242
- decommissioning of 12.38–39
- definition and purpose 238–240
- design integration and risk 2.50–52, 2.55–56, 2.59, 236
- installation of 220, 232
- intellectual property in 10.3
- separation and separators 240
- weight of 219, 222, 228, 232
- yards 2.57–58
turn-key obligations under charter 2.53, 2.69
- of construction yard 2.55, 3.4
- in conversion contract 4.98
- of FP Contractor 1.49, 2.12, 2.39, 4.29, 5.30
United Nations Convention on the Law of the Sea (UNCLOS) 12.35–36
variations to contract 2.18–22, 4.64–67
- additional consequences of 4.70–71
- case study 2.94–95
- change order documents 2.93–95
- clauses 2.82–83
- in construction contracts 3.19
- in conversion contracts 4.18, 4.21, 4.64–67
- disputes 2.84–88
- entitlement to make a change 2.32–33
- entitlement to suspend work pending design re-assessment 2.30–31
- mechanism 4.68–69, 6.11, 4.74
- negative variation orders 4.50
- other types of variations 4.75–77
- post-delivery variations 2.96–98
- preferential design changes 2.77–88
- pricing of 4.35–37, 4.39–40
- time limits 2.45, 2.91–92, 4.72–74
- variation orders 1.35, 2.14
- variation proposals 2.89–92, 12.25–28
- variation requests 2.75–76
warranties
- change of yard 4.113
- design warranties 2.15–16, 2.18, 2.60–61, 5.34
- fitness for purpose 2.25, 2.60–61, 4.22–30, 5.30, 9.28
- intellectual property 10.31, 10.42–50
- performance 5.30, 7.9, 7.11
- post-delivery warranties 4.21, 4.136, 5.6, 5.9, 6.30, 257–258
Waste Framework Directive 2008 12.54–57
water injection 2.4, 6.63, 215, 232, 239, 241, 243
wind farms 1.66, 4.5, 4.24

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Offshore Floating Production

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Index

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