+1 vote

Hybrid lease of a FPSO

asked Feb 22, 2014 in Offshore-Upstream by Normandy (21,040 points) | edited Feb 23, 2014 by odadmin
Can somebody explain what is hybrid lease of a FPSO?
commented Feb 24, 2014 by odadmin (21,030 points)
Great question. I am adding a separate category for offshore related questions.

1 Answer

+2 votes
answered Feb 22, 2014 by esjensen (2,720 points) | selected Feb 23, 2014 by odadmin
Best answer
A hybrid lease of FPSO is a model that is able to switch between a traditional lease FPSO operations and the ability to partially lease and own. For example, the oil operator can exercise the option of leasing the FPSO for 5 year and then purchase after the lease expired.

A hybrid FPSO involves risk and financial sharing between oil operator and the FPSO contractor. The hybrid model should be evaluated based on each project and depending work scopes, and who is in the best position to manage it.