PRICING MODEL FOR FPSO CHARTERING

Abstract

Floating Production, Storage, and Offloading (FPSOs) are vessels utilized to produce, process, and storage oil in deep water. Determining its chartering price is a complex task, but it is critical to ensure economic viability and the profit of shareholders. The objective of this study is to propose a pricing model for FPSOs chartering. The pricing model was constructed through the elaboration of a cash flow that considers the input values - contract rate and real operating time (uptime) – and the outputs – investment, operational costs, financial costs, and taxes. The definition of cash flow structure was based on several proposals to FPSOs chartering in Brazil and papers published in scientific journals and Congress proceedings. The model allows analyzing different scenarios by varying parameters such as investment and operational costs, and financing conditions. So, it can support the analysis of the FPSO contract price and contribute to the evaluation of charter proposals.