Analysis of coastal state regulation impact on the capacity optimization of floating storage and offloading using multi criteria decision making

Abstract

Floating Storage and Offloading (FSO) that is opted by most of offshore company to directly resettle crude oil and/or gas from the well during exploitation period has been commonly known as the results of the tanker conversion due to technical similarity as well as time and cost consideration. Some of the users are not aware that the compliance with the Coastal State and/or State’s institutional body where FSO will be permanently operated can be triggered to a great impact within the building and operation stages. Hence, the optimization process to satisfy all aspects such as technical, economical, and regulatory need to be conducted properly. This paper is aimed to analyse the impact of the regulations issued by a Coastal State of where FSO will be permanently operated toward the vessel capacity in the optimization process. The method used to analyse impact of regulation in optimization process is multi criteria decision making (MCDM). The mandatory provisions to convert the ship domestically is put into the influence factor of the ship optimization. Analysis result shows that cost is the most determining criteria, while coastal state’s regulation among top three aspects that influence on FSO capacity optimization.