This document discusses several key aspects of negotiating contracts for FPSO (floating production storage and offloading) units for offshore oil and gas field development. It outlines two possible contract strategies for FPSOs, a turnkey strategy or modular strategy. It also discusses pricing and risk allocation considerations at the tender stage. Finally, it notes that a letter of intent is typically negotiated before a full contract to help secure project timelines, but still presents challenges for both parties to negotiate project deliverables and responsibilities.