BW Offshore sets out plans to Hong Kong-compliant recycle FPSO

BW Offshore is sending its floating production, storage and offloading unit for recycling. The company announced on Friday that has sealed a deal to recycle FPSO “Petróleo Nautipa” in compliance with the Hong Kong International Convention at Baijnath Melaram ship recycling facility in India.

The company with a fleet portfolio of 4 FPSOs reveals that the sale will free up around $9m of liquidity.

Since its conversion to an FPSO in 2002, the unit has been in operation at the Etame field offshore Gabon for Vaalco Energy until the contract was completed in 2022 and the unit was demobilised.

Over the course of 20 years, the contract has been extended multiple times, from a contract that was initially 2 years firm plus 3 years of options.

As informed, BW Offshore intends to have BW Offshore personnel continuously at the site during the recycling period, supplemented by additional competent personnel from a third party, to ensure that health, safety and environmental regulations are followed.

A Ship Recycling Plan will be prepared and provided by the facility in compliance with the above regulations, says BW Offshore in its statement.

“BW Offshore will pay a “safe recycling” bonus upon completion provided the agreed requirements for safe recycling are met,” it added.

Meanwhile, BW Offshore management personnel will conduct visits to the facility with on-site walkabouts and workforce engagement during the recycling process.