A Introduction

6.1 Remuneration for services provided under an FPSO charter may vary considerably. There are three main elements. The first is the value of the FPSO itself. The second is the value of work and materials provided by the FP Contractor, which may vary from reimbursable costs through to day rate payments similar to a conventional time charter. The third is the adjustment of remuneration taking into account productivity – a form of incentivising the FP Contractor to maximise performance and to match remuneration to oil or gas production.