Abstract
<jats:title>Abstract</jats:title> <jats:p>An innovative approach for the electrification of Floating Production Storage and Offloading (FPSOs) and Floating Liquefied Natural Gas (FLNGs), leveraging Advanced Offshore Nuclear, is presented that can: significatively improve the return on the investment on existing and new FPSOs and FLNGs, reduce their carbon footprint, lower operational costs, and improve efficiency and reliability.</jats:p> <jats:p>The novel approach leverages on advanced offshore floating nuclear technology to power operations in fields with FPSOs, FLNGs, Floating Storage and Regasification Units (FSRUs), and Floating Production Units (FPUs). This innovative strategy enables the reduction of greenhouse gas (GHG) emissions (1), while providing operational and economic benefits, including reduced maintenance and improved efficiency. It also enhances reliability and uptime, positioning offshore assets for oilfield digitalization by the electrification of all the assets, including subsea. (2)</jats:p> <jats:p>FNUs can also expand the area of the reservoir, as FNUs can be located closer to new well centers and further away from the FPSO and FLNGs. They can receive production via extended tiebacks, which allows a revitalization of existing assets. (3)</jats:p> <jats:p>The increasing demand for sustainable and decarbonized energy solutions has prompted a critical re-evaluation of power generation methods in the offshore O&G sector. FPSO and FNLG vessels, which are crucial for offshore energy extraction and processing, are predominantly powered by conventional gas turbines and other internal combustion engines. The consistent and robust power supply provided by advanced offshore nuclear energy is uniquely suited to the high-energy demands of FPSO operations, as well as the intensive compression and liquefaction processes on FLNG vessels.</jats:p> <jats:p>This Paper proposes that advanced offshore nuclear power could improve the economics of FPSOs and FLNGs by reducing CAPEX per barrel of oil equivalent produced and lowering OPEX. Offshore nuclear can also improve production revenues due to enhanced oil recovery and from water desalination and/or hydrogen and/or ammonia production. Integrating Offshore nuclear energy reduces the carbon footprint. A lower carbon footprint reduces regulatory, transition, and reputational risk, which directly lowers the cost of debt, improves access to capital, and increases valuation multiples.</jats:p> <jats:p>The author has developed multiple FNU designs that are carbon-free, intrinsically safe, cost-effective, reliable, and highly scalable. (3) These novel designs can enable the decarbonization of the O&G industry and the production from existing reservoirs while delivering low-carbon products increasingly demanded by consumers and investors. These solutions position the industry to lead the energy transition without compromising on safety, affordability, performance, or energy security.</jats:p>