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Floating production storage and offloading vessels sit at the center of the modern offshore value chain because they turn stranded offshore discoveries into flowing barrels without waiting for expensive pipelines or coastal terminals. An FPSO receives fluids from subsea wells, processes oil and gas, stores stabilised crude, and offloads to shuttle tankers—an agile setup that lets operators monetise deepwater and frontier plays at lower upfront cost and with redeployment options when a field declines. Industry trackers count Brazil as the global epicentre: Rystad Energy notes 45 of the 167 FPSOs in operation worldwide are in Brazilian waters, and more than 40% of the current order book is headed there, underscoring how central FPSOs are to supply growth. (1)
Although the phrase “FPSO drilling” appears in market chatter, FPSOs typically do not drill; mobile offshore drilling units drill and complete wells that then flow to the FPSO for processing and storage. The distinction matters for safety, scheduling and emissions accounting, but the term persists as shorthand for development campaigns tied to FPSO-led projects. Reference guides from operators and industry sources emphasise the FPSO’s production-and-storage role in the system. (2)
Brazil’s pre-salt basins illustrate FPSO scale and economics. Petrobras has repeatedly set production records in the pre-salt, while suppliers such as SBM Offshore have brought large units online—including Almirante Tamandaré and Alexandre de Gusmão in 2025—validating the model’s reliability at ultra-deepwater depths. Brazil’s concentration of units and know-how drives learning-curve effects that continue to pull new projects into the queue. (3)
West Africa is the other historical stronghold. Angola and Nigeria anchor a basin-wide revival, with dozens of active FPSOs and rigs supporting brownfield tie-backs and greenfield work, while Namibia and Senegal/Mauritania open fresh frontiers. Operators are also pairing new FPSOs with lower-operational-emission designs and offsets, as seen in Angola’s Agogo Integrated West Hub start-up.
A third growth pole has emerged off Guyana and Suriname. ExxonMobil’s Stabroek Block now operates multiple FPSOs, with the fourth—ONE GUYANA—brought on hire in August 2025, and a program targeting ~900,000 barrels per day of nameplate capacity as additional vessels arrive. The supplier side is adapting with debottlenecking and high-uptime operations, signalling a maturing supply chain for ever-larger units. (4)
Outside the tropics, FPSOs remain strategic in the North Sea, where redevelopments like Shell’s Penguins project moved from ageing fixed platforms to a new FPSO, cutting operational emissions and extending field life—evidence that the concept is equally a life-extension tool as it is a frontier enabler. (5)
Looking ahead, the macro case for FPSOs is durable even in varied energy-transition scenarios. The IEA projects offshore—particularly deepwater—will continue to supply a substantial share of global liquids this decade, with deepwater discoveries accounting for a large portion of new resources. Market outlooks foresee an FPSO sector of roughly $13 billion in 2025, growing toward ~$20 billion by 2030, supported by 20–25 units under construction or planned at any time, robust order books, and vendor guidance reflecting higher revenue and fleet uptime. For editorial clarity in a Wall Street Journal piece, you can frame “FPSO drilling” as the shorthand for large offshore development phases centred on FPSO production hubs that coordinate drilling, completions, subsea tie-backs and processing into a single, capital-efficient sequence.
In sum, FPSOs are indispensable to unlocking deepwater barrels quickly and flexibly. The main theatres—Brazil’s pre-salt, West Africa’s revival, and the Guyana-Suriname boom—are setting the pace, while selective redevelopments in the North Sea showcase efficiency gains. Expect continued momentum as operators pursue high-margin barrels and suppliers scale bigger, cleaner, and more reliable units—even as “FPSO drilling” remains an industry shorthand rather than a literal description of what these ships do.
The process that leads an FPSO to produce oil begins long before the vessel arrives on station. Exploration starts with seismic surveys, which use reflected sound waves to map subsurface formations and identify potential hydrocarbon traps. When promising structures are found, exploratory drilling confirms the presence, depth, and pressure of oil and gas reservoirs. If results justify development, engineers move into appraisal, drilling several delineation wells to define the reservoir’s size and characteristics. This data feeds into reservoir modelling, production forecasting, and economic studies that determine whether a field can be commercially developed with an FPSO.
Once the project is sanctioned, subsea infrastructure design begins. Because an FPSO—short for floating production storage and offloading vessel—sits above a field, it requires a network of subsea wells, manifolds, flowlines, and risers to connect the reservoir to the ship. The wells are drilled by mobile offshore drilling units, not the FPSO itself, though this integrated phase is often described as part of “FPSO drilling” campaigns. Each well is completed with production tubing, safety valves, and sometimes downhole pumps to optimise flow. Subsea trees and manifolds control the movement of fluids. At the same time, flexible risers transport them from the seabed to the vessel’s turret, a rotating connection that allows the FPSO to weathervane with wind and waves without tangling the lines.
Once the FPSO is moored and connected, the production phase begins. The mixture arriving from subsea wells contains crude oil, natural gas, formation water, and sediments. Inside the processing plant on the FPSO’s topsides, the first stage is separation: large pressure vessels divide the multiphase flow into oil, gas, and water streams. The oil then passes through heater treaters and electrostatic coalescers to remove residual water and solids, reaching export quality—typically less than 0.5% water content. The gas is compressed and treated to remove CO₂ and hydrogen sulfide; part of it powers the FPSO’s turbines and compressors, while excess gas may be reinjected into the reservoir to maintain pressure or used to lift heavier crudes. Produced water is cleaned and either discharged according to environmental regulations or reinjected to support the reservoir drive.
Processed oil is stored in the FPSO’s double-hulled tanks, often capable of holding one to two million barrels. When storage nears capacity, shuttle tankers moor alongside in a carefully controlled tandem offloading operation. The oil is pumped through floating hoses to the tanker, which then transports it to shore for refining. This eliminates the need for fixed export pipelines, a key advantage in remote or deepwater regions.
Throughout production, sophisticated monitoring and automation systems track flow rates, pressures, and temperatures, ensuring safe operation and optimising recovery. Crew members maintain 24-hour operations, balancing production efficiency with environmental and safety standards. Over a typical 20-year field life, the FPSO may periodically undergo upgrades or maintenance campaigns while remaining on site. When the field is depleted, the vessel can be disconnected and redeployed elsewhere—a flexibility that has made FPSO drilling and production one of the most adaptable and economically resilient models in offshore oil development.
Operating an FPSO involves an intricate chain of risks that extends from subsea systems to onboard crew safety, demanding constant vigilance and robust management. One of the primary technical challenges lies in maintaining integrity across the subsea network—risers, flowlines, and wells operate under immense pressure and temperature, and any failure can trigger production loss or environmental incidents. Corrosion, hydrate formation, and fatigue in dynamic risers are persistent threats, while process upsets on the topsides—such as gas leaks or equipment overpressure—carry significant explosion and fire hazards. Weather conditions amplify these risks: high winds, heavy seas, and cyclones can strain moorings, disrupt offloading operations, and endanger personnel during emergency transfers (for more, see also: EHS Audit).
Human and organisational factors remain equally critical. Crew members on FPSOs often live in isolated offshore environments for weeks at a time, working around rotating machinery, high-voltage systems, and volatile hydrocarbons. Fatigue, stress, and complacency can compromise situational awareness. In addition, helicopter transport and shuttle-tanker operations introduce aviation and marine collision risks, while confined spaces and hazardous substances increase the potential for injuries or exposure incidents. The complex interface between multiple contractors—drilling, production, maintenance, and marine support—requires strict coordination to prevent procedural conflicts and miscommunication (read more about crew attendance and electronic POB).
To mitigate these risks, FPSO operators implement a layered safety regime that starts with engineering design. Double-hulled storage tanks, blast walls, fire and gas detection loops, automatic shutdown systems, and emergency depressurisation valves minimise escalation potential. Crew well-being is safeguarded through rigorous training in permit-to-work systems, isolation procedures, and emergency response. Regular drills simulate fire, explosion, and abandon-ship scenarios, while life-saving appliances such as free-fall lifeboats and personal locator beacons are strategically placed and maintained. Advanced monitoring technologies—like condition-based maintenance sensors and real-time leak detection—allow for predictive intervention before failures occur.
Psychological and occupational health are now integral to offshore safety management. Rotational schedules, telemedicine support, recreational facilities, and fatigue management programs help maintain mental resilience. The broader shift toward digitalised safety systems, including remote diagnostics and automated shutdown logic, further reduces crew exposure to hazardous zones. In essence, FPSO drilling and production demand not only technical excellence but also an enduring safety culture where engineering, discipline, and human care work together to protect life amid one of the most challenging industrial environments on Earth.
An FPSO, or Floating Production Storage and Offloading vessel, processes hydrocarbons from subsea wells, separates oil, gas, and water, stores the stabilised crude, and offloads it to shuttle tankers for transport. It replaces the need for fixed platforms and pipelines, making it ideal for deepwater or remote fields where permanent infrastructure would be uneconomical.
No, the FPSO itself does not drill. Drilling and well completion are performed by separate mobile offshore drilling units. Once the wells are producing, fluids flow through subsea lines into the FPSO for processing and storage. The term “FPSO drilling” is often used informally to describe development campaigns linked to an FPSO-based project.
Safety on FPSOs relies on multiple barriers, including automated shutdown systems, gas and fire detection networks, double-hulled storage tanks, and frequent emergency drills. Crews receive extensive training in isolation procedures, evacuation, and hazard awareness. Environmental safeguards include produced-water treatment, gas reinjection, and spill-prevention systems—ensuring FPSO operations meet stringent international safety and environmental standards.
The complexity of FPSO drilling and production brings inherent risks that cannot be eliminated—only managed through discipline, preparation, and culture. From high-pressure subsea systems to volatile topside processes, even small failures can escalate rapidly in remote offshore settings. That is why rigorous emergency preparedness, continuous crew training, and proactive maintenance are not optional but fundamental. The safety of every person on board depends on systems that work flawlessly and teams that know exactly how to respond when they don’t. In the world of FPSOs, readiness is the only true safeguard against disaster.
Delve deeper into one of our core topics: Personnel on board
Offshore drilling is the process of extracting petroleum and natural gas from beneath the ocean floor using specialised rigs or vessels. It begins with exploratory drilling to locate reserves, followed by development wells for sustained production. Operations occur on fixed platforms, semi-submersibles, or drillships, often in challenging deepwater environments requiring advanced technology and strict safety protocols. Offshore drilling underpins global energy supply but also poses environmental and operational risks. (6)
References:
(1) https://en.wikipedia.org/wiki/Floating_production_storage_and_offloading
(2) https://www.modec.com/business/service/floater/fpso/
(4) https://www.sbmoffshore.com/newsroom/fpso-one-guyana-producing-and-on-hire
(6) Economides, M. J., & Nolte, K. G. (2000). Reservoir Stimulation (3rd ed.). Wiley.
Note: This article was partly created with the assistance of artificial intelligence to support drafting. The head image was created by AI.