The U.S. Mineral Management Service (MMS) has issued a Final Environmental Impact Statement that gives an overall green light for development of Floating Production, Storage, and Offloading Systems (FPSOs) in the deepwater of the Gulf of Mexico.

FPSO's, of course, beget shuttle tankers. Already, U.S. shipbuilders are looking forward to receiving a stream of orders for either ATB (articulated tug barge) or conventional tankers for this service. They're reporting inquiries from both oil majors and existing independent Jones Act tanker market players.

Charles A. Papavisas, a partner in law firm Winston & Strawn, is among the speakers at Marine Log's upcoming Gulf Offshore conference, being held in Biloxi, Miss., on June 6 & 7..

In a recent Maritime Briefing, Winston & Strawn cautioned that, although the final EIS is an important milestone, warns law firm Winston & Strawn , it is a programmatic approval and specific projects must still be approved in detail and receive all relevant permits.
The Winston & Strawn briefing notes that the Final EIS contained no major changes from the draft EIS issued on August 9, 2000. That draft found that for an FPSO system with assumed characteristics:

1. environmental impacts "are essentially the same as with other deepwater development and production systems;"
2. "that most of the risk of oil spills is associated with shuttle tankers, not the FPSO itself, and that risk is comparable to the risks from other deepwater systems and from pipelines;" and
3. "excluding FPSOs would not reduce cumulative environmental impacts because other systems would be in its place."
   

The assumed characteristics for an FPSO system were, among other things, a double-hulled, purpose-built FPSO, permanently moored turret, gas export pipeline, and shuttle tankers for transporting oil (rather than a pipeline).

Winston & Strawn says that the MMS and the Coast Guard each has jurisdiction over a portion of the FPSO system. As established in a Memorandum of Understanding (MOU) between the agencies updated in December 1998, the MMS has primary jurisdiction over the equipment and operations directly involved in the production of oil and gas, and the Coast Guard has primary jurisdiction over the FPSO and shuttle tankers.

UNANSWERED QUESTIONS
Although it is a comprehensive environmental assessment, the Final EIS leaves many significant maritime questions unanswered ...

MORE

HOME