BW Offshore to Recycle FPSO BW Cidade de São Vicente

FPSO leasing company BW Offshore has decided to recycle the FPSO BW Cidade de São Vicente.

The company said it had signed an agreement with Priya Blue Industries yard in India to recycle the FPSO in compliance with Hong Kong Convention. The convention, adopted in 2009, is aimed at ensuring that ships when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety, and the environment.

The FPSO, delivered in the year when the convention was adopted, was sold to the yard for $12.8 million in cash.

"The yard is certified to ISO standards and has been issued with a Statement of Compliance by Class NK in accordance with the IMO Resolution MEPC.210(63) and the Hong Kong International Convention for the safe and environmentally sound recycling of ships," BW Offshore said.

"BW Offshore has nominated a third party to be on-site at the recycling yard to ensure Health, Safety and Environmental regulations are followed. A Ship Recycling Plan has been prepared and provided by the Yard in cooperation with the Gujarat Maritime Board in compliance with the above regulations. To further incentivize safe operations, the company will pay a "safe recycling" bonus upon completion," the company added.

BW Cidade de São Vicente started its operational life with a Petrobras contract in 2009 and had been utilized as a well test facility for the Brazilian oil company on multiple locations offshore Brazil. According to available info, the FPSO last worked for Petrobras in 2020.

In February 2021, BW Offshore said it had decided to record an impairment to the book value of the FPSOs Berge Helene, BW Cidade de São Vicente, and Espoir Ivoirien amounting to USD 59.6 million in the fourth quarter of 2020.

"The impairments reflect continued uncertainty around redeployment and extension for certain older units in the fleet. The uncertainty is tied to the current market volatility and future development of oil prices, and also considering increased focus on energy transition," the company said at the time.

BW Offshore's recent quarterly reports show that the FPSO has been in cold lay-up in Oman, waiting to be recycled.

FPSO BW Cidade de São Vicente: