Financing Floating Production Storage & Offloading Units

Learn how project finance techniques have been specifically developed for financing offshore oil & gas infrastructure. The focus is on risk analysis and the contractual structure required for the financing of floating production storage & offloading units (FPSOs).

This course is designed to provide participants with an introduction to the techniques employed for financing FPSOs. Alongside gaining an understanding of the technology and contractual structures that have been designed to mitigate the risks associated with financing offshore infrastructure assets, participants will also learn how oil & gas reserves are estimated.

Starting with an overview of the oil & gas industry, participants will learn how FPSO design has developed from converted oil tankers to modern newbuilds.  They will learn how oil & gas reserves are classified and the process of analysing offshore financing risks, together with the various mitigation strategies which can be implemented.

Particular attention is paid to understanding the terms of charter agreements and the contractual framework which underpins the lease-and-operate structure under which most FPSO financings are arranged.  The course includes an introduction to the increasing importance of environmental, social and governance (ESG) issues.

Participants’ knowledge is consolidated through example case studies and interactive practical exercises.

On completion of the course, participants will be equipped with a clear understanding of:

  • The role of offshore infrastructure in the oil & gas industry;
  • The estimation and classification of oil & gas reserves;
  • FPSO design and operation;
  • Qualitative & quantitative risk analysis;
  • Charter agreements and commercial contracts;
  • The lease-and-operate model;
  • FPSO debt structuring;
  • The importance of environmental, social and governance (ESG) considerations.

The course is led by Ian Cogswell, who shares the knowledge he has gained  from over 20 years’ practical experience of oil & gas project financing.