Step 1: Recall what an FPSO is and what it is designed to do:
An FPSO, floating production, storage, and offloading system, is a large ship shaped offshore facility that receives well fluids, processes them, stores the stabilized crude oil on board, and periodically offloads it to shuttle tankers for transport to shore. It is a self-contained alternative to a fixed platform tied to a shore pipeline.
Step 2: Analyze option (A):
Option (A) claims existing tankers cannot be converted into FPSOs. In practice, converting existing oil tankers into FPSOs is a very common and cost effective industry practice, since a tanker hull already provides large storage capacity and can be retrofitted with topside processing modules and a turret mooring system. So option (A) is incorrect.
Step 3: Analyze option (B):
Option (B) states that FPSOs can be selected in the absence of any pipeline infrastructure. This is true and is in fact one of the main reasons FPSOs are chosen, particularly in remote or deepwater fields far from shore where laying an export pipeline is costly or impractical. The FPSO stores the oil and offloads it directly to shuttle tankers, removing the need for a pipeline. So option (B) is correct.
Step 4: Analyze option (C):
Option (C) states that FPSOs cannot process the produced fluids. This is incorrect because the topsides of an FPSO carry full processing facilities, separators, dehydration units, gas treatment and compression, and water treatment systems, so the produced well stream is processed on board before the oil is stored. So option (C) is incorrect.
Step 5: Analyze option (D):
Option (D) states that FPSOs can be used for storage of produced crude oil. This is true and is literally part of the definition, the processed crude is stored in the vessel hull tanks until it is offloaded to a shuttle tanker. So option (D) is correct.
Final Answer:
\[ \boxed{\text{(B) and (D) are correct}} \]