Industry has recently begun exploiting deepwater petroleum resources in the Gulf of Mexico and other regions of the world. Produced fluids from subsea developments may be pipelined significant distances for separation and processing; at other locations floating structures such as tension leg platforms and ships will be utilized for production handling. The cost of facilities to handle, process and transport fluids is a significant component of the total cost of deepwater projects, which for large developments may exceed $1 billion. There is a great incentive to achieve large cost reductions by minimizing the size and weight of fluid processing facilities. Fluid processing challenges in the deepwater are both numerous and unique. This paper will address a number of these issues, many of which need research solutions and the development of new technologies. Among the topics discussed are: Solids-related problems (e.g. hydrates, paraffins, asphaltenes) aggravated by the low temperature environment of the deepwater Very high well flow sates and operating pressures Atypical fluid properties which make gas-liquid separations difficult Excessive condensation of liquids (e.g. NGLs) in gas export pipelines and internally within the production facility The need for improved gas hydrate control/prevention for subsea developments having limited access The effect of motion on processing facilities located on floating structures Utilization of natural gas in very deep water, remote oil developments not served by pipelines.