FPSO Construction Dispute
October 27, 2023
Floating production storage and offloading (FPSO) vessels are essentially floating refineries. An FPSO is docked at an offshore platform, where crude oil is produced and refined into finished products. The finished products are then offloaded to tanker vessels or barges where they are shipped to their next destinations. FPSOs are complex vessels that may take years to build and commission. In many cases, construction disputes may arise with respect to contested change orders, schedule delays, and associated cost escalation.
Rimkus was retained to assist in the resolution of contested change orders and schedule delays related to five FPSOs. The case involved the review of thousands of documents, cost estimating, labor productivity assessments, schedule delay analysis, several currency conversions, and claim valuation. Rimkus utilized a multidiscipline team of experts including structural, fire safety, mechanical, and electrical engineers and forensic delay and cost experts.