Floating production, storage & off-loading (FPSO) ERPs require companies to consider a unique set of system capabilities when selecting software.
At the Annual FPSO Europe Congress in London last week, it seemed “everyone” agreed that costs needed to go another 20-30% lower in order to get new FPSO projects sanctioned. Over the past two years, we have seen a remarkable drop in costs, though mainly driven by cost depreciation lowering the Cost Index. The hard part is coming over the next few years. To achieve break-even prices in the 30-50 band, a lot of work is ahead of us.
This endeavor will by no means be easy. It will require new innovative designs and fabrication methods. It will require oil companies to work closely with FPSO players to determine cost-effective designs. It will also mean that the FPSO companies themselves must find new and cost-effective ways of delivering projects and achieve a sustainably lower operational cost than today. All other industries that have met similar challenges have used IT as an integral and transformational component to this end.
As a telling example, you can easily find examples from the European manufacturing industries such as the auto industry where this has been the case. The FPSO industry has many of the same challenges the auto industry had in the 80s and 90s when the threat of low-cost production overseas became an existential question. A little bit like how the shale industry is, in fact, threatening the FPSO industry today.
However, even if the situation may look similar, the solutions needed to solve the problem look very different. At least that is what we at IFS believe when it comes to IT and ERP strategies.
When your key assets are production vessels that work offshore in dozens of places around the globe, and when these assets were specially converted by engineering and shipyard partners under a complex, multi-year process, those qualities drive particular enterprise software needs. That is why the selection of enterprise resource planning (ERP) by companies that own and operate FPSO vessels bring with it a unique set of system capabilities to consider.
ERP for Floating Production, Storage & Off-Loading (FPSO): A Platform to Control Projects and Maximize Assets
In this white paper you will discover:
- Why database replication at the application level benefits FPSO operations
- Why the EPCI phase in which an FPSO vessel is built requires project management software functions
- Why effective handover of asset and engineering data from the EPCI phase to systems for EAM is essential for effective operations and maintenance
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