A floating production, storage and offloading (FPSO) unit is a floating vessel used by the offshore oil and gas

industry for the processing of hydrocarbons and for storage of oil. An FPSO vessel is designed to receive hydrocarbons produced from nearby platforms or subsea template, process them, and store oil until it can be offloaded onto a tanker or, less frequently, transported through a pipeline. FPSOs are preferred in frontier offshore regions as they are easy to install, and do not require a local pipeline infrastructure to export oil. FPSOs can be a conversion of an oil tanker or can be a vessel built specially for the application. A vessel used only to store oil (without processing it) is referred to as a floating storage and offloading vessel (FSO). There are also under construction (as at 2013) Floating Liquefied Natural Gas (FLNG) vessels, which will extract and liquify natural gas on board.

A floating storage and offloading unit (FSO) is essentially a simplified FPSO without the capability for oil or gas processing. Most FSOs are converted single hull supertankers. An example is Knock Nevis, ex Seawise Giant, for many years the world's largest ship, which has been converted to an FSO for use offshore. The vessel was sold to Indian ship breakers, and renamed Mont for her final journey in December 2009. After clearing Indian customs, she was sailed to, and intentionally beached at Alang, Gujarat, India for demolition. At the other end of the LNG logistics chain, where the natural gas is brought back to ambient temperature and pressure, specially modified ships may also be used as floating storage and regasification units (FSRUs). A LNG floating storage and regasification unit receives liquefied natural gas (LNG) from offloading LNG carriers, and the onboard regasification system provides natural gas exported to shore through risers and pipelines. Mooring systems for FSO, FPSO & FSU units are available in market which allow the vessel to be moored on an ice sheet.[citation needed] Royal Dutch Shell (2013) - LNG FPSO(Liquified Natural Gas Floating production Storage and Offloading) - Samsung Heavy Industry - $2-5 Billion.