Global Arbitration Review: Offshore Vessel Construction Disputes
Certainly at the peak of the market, the most complex and technologically advanced units cost in excess of US$1 billion to construct. The offshore oil and gas industry today, however, requires more than merely the deployment of drilling units for its operation. The industry now requires a full range of vessels to support it including FPSOs (floating production storage offloading), FSUs (floating storage units), accommodation vessels (floatels), heavy-lift vessels, pipe-laying vessels, and myriad support vessels. Perhaps unsurprisingly it is the largest and most sophisticated commercial shipbuilding yards that have moved into the construction of offshore oil and gas floating units. Incentivised by the potentially lucrative nature of building such assets, in recent years it has tended to be the shipyards of South Korea, China and Singapore that have been the pre-eminent builders.