BW Offshore has signed an agreement to recycle FPSO Petróleo Nautipa in compliance with the Hong Kong International Convention at Baijnath Melaram ship recycling facility in India.
BW Offshore intend to have BW Offshore personnel continuously at the site during the recycling period, supplemented by additional competent personnel from a third party, to ensure health, safety and environmental regulations are followed.
The Baijnath Melaram facility is certified to ISO standards and has been issued with a Statement of Compliance by the ship classification society Class NK in accordance with IMO Resolution MEPC.210(63) and the Hong Kong International Convention for the safe and environmentally sound recycling of ships.
A ship recycling plan will be prepared and provided by the Facility in compliance with the above regulations.
To further incentivize safe recycling, BW Offshore will pay a ‘safe recycling’ bonus upon completion provided the agreed requirements for safe recycling are met.
BW Offshore management personnel will conduct visits to the facility with on-site walkabouts and workforce engagement during the recycling process.
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 demobilized.
Over the course of 20 years, the contract has been extended multiple times, from a contract that was initially two years firm plus three years of options.
The sale will free up approximately $9 million of liquidity, BW Offshore noted.