Contracting challenges in FPSO projects article published in American Journal of Transportation authored by Head of Projects, Energy and Infrastructure Ton Van Den Bosch

24 Feb 2026

Head of Projects, Energy and Infrastructure Ton Van Den Bosch authored the article titled “From concept to first oil: Contracting challenges in FPSO projects”, published in the American Journal of Transportation.

In his article, Ton examines the significant contractual challenges in constructing Floating Production, Storage, and Offloading (FPSO) vessels for offshore oil and gas projects. The construction phase is the most risk-intensive of an FPSO project due to the complex web of simultaneous contracts involved (e.g., with shipyards, equipment vendors). The central problem is time risk; delays are common but difficult to remedy. Standard contractual remedies, like liquidated damages, often fail to compensate the oil company for massive revenue losses from deferred production, while simultaneously exposing contractors to crippling financial exposure. To mitigate this, the article suggests contracts must include proactive tools to manage delays, such as rights to accelerate work or step in. Ultimately, a coordinated, integrated contracting approach, aligning risk allocation and provisions across all project contracts from the start is essential to managing execution risk and achieving timely first oil.

Please click here to read the article.

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