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Floating Production, Storage and Offloading (FPSO)

A Floating Production, Storage and Offloading system is an offshore production facility that is typically ship-shaped and that stores crude oil in tanks located in its hull.  The crude is periodically offloaded to shuttle tankers for transport to shore.

On January 2, 2002, the agency, at that time known as the Minerals Management Service (MMS) issued a Record of Decision to allow FPSOs in the Gulf of Mexico.  (See News Release).  The then-MMS would accept applications for the use of FPSOs and each would be considered on a case-by-case basis.  (See Recommendations and Record of Decision - Proposed Use of Floating Production, Storage, and Offloading Systems On the Gulf of Mexico Outer Continental Shelf Western and Central Planning Areas)

In addition to consultation with federal agencies and extensive public input, the then-MMS relied on the careful analysis of two essential documents in reaching this decision.  (See MMS Holds EIS Scoping Meetings to Receive Input on FPSO Issues)

First, the then-MMS required that an Environmental Impact Statement (EIS) be completed.  The EIS, published in February of 2001, evaluated potential environmental impacts, provided a programmatic NEPA review of FPSO operations, which allowed for public disclosure and input.  (See Final Environmental Impact Statement MMS 2000-090)

Concurrent with preparation of the EIS, an MMS-funded Comparative Risk Analysis (CRA) was performed to compare the relative risks of an FPSO system with other deepwater development systems in use in the Gulf.  The analysis showed no significant differences in the oil-spill risks among the systems studied.  (See Comparative Risk Analysis for Deepwater Production Systems)

On February 28, 2008, the then-MMS and the U.S. Coast Guard signed a Memorandum of Agreement (MOA) to identify and clarify responsibilities for regulating or approving specific systems associated with FPSOs.  (See Floating Offshore Facilities)

General FPSO Development Process

In general, action on specific FPSO proposals would proceed as any other deepwater hydrocarbon development.

Oil and gas operators in the Gulf submit their development plans in a package called a Development Operations Coordination Document (DOCD).  This document outlines the operational plan for developing the project, including timelines for drilling wells and installing production facilities, as well as geological and geophysical information.  This document also identifies any specific environmental issues that must be addressed, including safety and pollution prevention.

Specific environmental issues are addressed through a site-specific Environmental Assessment.  Prepared by the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), this assessment analyzes the potential environmental and socioeconomic impacts of the oil and gas activities associated with the project.

The next step in the development process is BOEMRE’s review of the Deepwater Operations Plan (DWOP), which outlines the specific details and capabilities of the FPSO facility and associated new technologies, and must be approved before production can commence.

Finally the Production Safety System permit must be approved.

First Application for FPSO in Gulf of Mexico

Petrobras’ Cascade-Chinook Project - Walker Ridge 206 and 469

Petrobras submitted the initial DOCD on November 28, 2007.  The proposed project uses an FPSO to store oil, with any natural gas processed transported to shore by pipeline.  Petrobras’ FPSO is equipped with a disconnectable turret so that in the event of a hurricane or tropical storm, the facility can disconnect from the turret and move off location until the storm has passed.

In April of 2008, the then-MMS approved Petrobras’ Development Operations Coordination Document (DOCD) for the project after a thorough environmental and technical review.  The analysis of the site-specific EIS resulted in the then-MMS issuing a “Finding of No Significant Impact,” allowing the project to continue the development process. (See Minerals Management Service Approves Development Plans for First Use of Floating Production Storage Offloading Facility in Gulf of Mexico )

In August of 2009, then-MMS approved Petrobras’ initial Deepwater Operating Plan.

In March of 2011, BOEMRE approved the Supplemental DWOP and Production Safety System permit allowing Petrobras to begin production at Cascade-Chinook from the FPSO, B.W. Pioneer.  (See Press Release)

Cascade - WR 206

Initial DOCD 11/20/2007 - WR 206

Plan approval 4/30/2008 - WR 206

Chinook - WR 469

Initial DOCD 11/20/2007 - WR 469

Plan approval 4/30/2008 - WR 469

News Releases

• BOEMRE Approves First-Ever Use of Deepwater Floating Production Storage Offloading Facility in Gulf of Mexico  (March 17, 2011)
• Minerals Management Service Approves Development Plans for First Use of Floating Production Storage Offloading Facility in Gulf of Mexico  (April 29, 2008)
• Clarification on the Disposition of Associated Gas Related to Oil Production from a Floating Production, Storage, and Offloading (FPSO) in the Gulf of Mexico Region  (October 21, 2002)
• MMS Reaches Decision about FPSO's in Gulf of Mexico  (January 2, 2002)
• Notice of Availability of the Final Environmental Impact Statement on the Proposed Use of Floating Production, Storage, and Offloading Systems on the Gulf of Mexico Outer Continental Shelf, Western and Central Planning Areas  (February 2001)
• MMS Announces the Availability of the Final EIS on Floating Production, Storage, and Offloading Systems, and Completion of the Comparative Risk Analysis  (February 9, 2001)
• Proposed Use of Floating Production, Storage, and Offloading Systems on the Gulf of Mexico Outer Continental Shelf, Final Environmental Impact Statement MMS 2000-090  (February 2001)
• Comparative Risk Analysis of Deepwater Production Systems  (February 2001)
• MMS Announces the Availability of the Draft EIS on Floating Production, Storage, and Offloading Systems and Public Hearing Schedule  (August 10, 2000)
• Environmental Review of FPSO Systems Begun  (May 3, 1999)