The FPSO will be used alongside the 680,000 barrel capacity storage tanker, Basker Spirit, on the Anzon Australia and Beach Petroleum joint venture, which began developing the Bass Strait oilfield earlier this month.

Basker-2 will produce up to 8000 barrels of oil per day (bopd) and is the first of at least four proposed subsea production wells.

The Basker-Manta project will produce 20,000 to 25,000 bopd at its peak, about 25% of Victoria’s current oil production.

Built in Scotland in 1999, the Crystal Ocean has a crude oil capacity of 40,000 barrels stored in eight tanks and can reach up to 12.5 knots at full speed when fully loaded.

Minister for energy industries and resources, Theo Theophanous, said the vessel was unique in its compact size – 101 metres long – and used the industry’s most modern technology.

“The Crystal Ocean is a first for Bass Strait, marking an important historical event for oil development in offshore Victoria,” Theophanous said.

“The overall development involves a zero onshore footprint and minimal offshore footprint.”

The Crystal Ocean is to be moored without anchors, instead using a dynamic positioning system with triple redundancy computers and bow, stern and central thrusters, which maintains geographic position over the wells to within 10 metres.

The production wells and gas injection well will be connected from the sea floor 155 metres below the vessel to a disconnectable turret mooring (DTM). In heavy seas, the vessel can disconnect from the DTM and take shelter.

A crude oil export flowline will transport the stabilised crude 1.5km to a moored shuttle tanker, which will then disconnect and ship the crude oil to a nearby refinery or to another tanker for possible export.

After completion of the final fit out in Port Melbourne, the Crystal Ocean will take up position in the Bass Strait field, where it is contracted until at least January 2008 with an option for three extensions for up to an additional four years.