BW Offshore Set To Recycle FPSO BW Cidade de Sao Vicente

BW Offshore Set To Recycle FPSO BW Cidade de Sao Vicente
BW Offshore has signed an agreement to recycle the FPSO BW Cidade de Sao Vicente at the Priya Blue Industries yard in India.

FPSO operator BW Offshore has signed an agreement to recycle the FPSO BW Cidade de São Vicente at the Priya Blue Industries Ltd yard in India.

BW Offshore said that the FPSO BW Cidade de São Vicente would be recycled in compliance with the Hong Kong International 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.

According to the company’s statement from Wednesday, the vessel was sold for a cash consideration of $12.8 million.

BW Offshore added that the Priya Blue Industries yard was certified to ISO standards and has been issued with a Statement of Compliance by Class NK in accordance with the IMO Resolution and the Hong Kong International Convention for the safe and environmentally sound recycling of ships.

The FPSO operator has nominated a third party to be on site at the recycling yard to ensure health, safety, and environmental regulations are followed.

As for the current status of the FPSO BW Cidade de São Vicente, the company’s most recent fleet status reports indicate that the FPSO has been in cold lay-up in Oman.

“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,” BW Offshore stated.

It is worth reminding that the BW Cidade de São Vicente started its operational life with Petrobras back in 2009. It was used as a well test facility for the Brazilian oil giant on several fields offshore Brazil.

BW Offshore claimed in early 2021 that it recorded an impairment to the book value of three FPSOs – the Berge Helene, Cidade de São Vicente, and Espoir Ivoirien. The impairment amounted to $59.6 million in the fourth quarter of 2020.

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