BW Offshore to Recycle FPSO Petróleo Nautipa in an Environmentally Friendly Process
BW Offshore has agreed to responsibly recycle the FPSO Petróleo Nautipa, following the guidelines of the Hong Kong International Convention. They’ve chosen the Baijnath Melaram ship recycling facility in India for this purpose.
This facility meets ISO standards and has received a compliance statement from the ship classification society Class NK. This certification aligns with regulations set forth by the International Maritime Organization (IMO) and the Hong Kong International Convention, ensuring safe and environmentally friendly ship recycling practices.
BW Offshore, a company specializing in floating production solutions, has signed an agreement to dismantle and recycle their FPSO (Floating, Production, Storage and Offloading) vessel Petróleo Nautipa. This process will be conducted responsibly, adhering to the strict guidelines set forth by the Hong Kong International Convention for safe and environmentally sound ship recycling.
Recycling with the Highest Standards
The chosen recycling facility is Baijnath Melaram, located in India. This facility boasts ISO certification, demonstrating their commitment to quality management systems. Additionally, Class NK, a well-respected ship classification society, has issued them a Statement of Compliance. This statement verifies the facility’s adherence to the Hong Kong Convention and International Maritime Organization (IMO) Resolution MEPC.210(63), both emphasizing safe and eco-friendly ship recycling practices.
To guarantee that these regulations are strictly followed throughout the recycling process, BW Offshore will have its own personnel stationed at the site. They will be joined by extra qualified personnel from a third-party company, ensuring a comprehensive and watchful presence. A detailed ship recycling plan, outlining the entire dismantling procedure, will be prepared by the Baijnath Melaram facility and will strictly comply with the aforementioned international regulations.
Extending the Life and Freeing Up Capital
BW Offshore expects to gain approximately $9 million in liquidity from the sale of the FPSO Petróleo Nautipa for recycling. This vessel has had a distinguished career, serving for over 20 years after its conversion to an FPSO in 2002. It was deployed at the Etame Field, located offshore Gabon, and operated under contract with Vaalco Energy. The initial contract was just two years firm, with the possibility of extending for an additional three years. However, due to the vessel’s dependable performance, the contract was extended multiple times throughout its service life.
Vaalco Energy Charts a New Course
In late 2023, Vaalco Energy was busy selecting potential locations for their next drilling campaign planned for the Etame Field. This news coincided with a period of strong production performance for Vaalco Energy, driven in part by improved operational uptime. Their decision to install a new FSO (Floating Storage and Offloading) vessel at Etame has proven successful, leading to a reduction in operating expenses. However, they have also encountered some challenges. The cost of marine services has increased due to factors like inflation affecting supply vessel rates, transportation costs, and contractor fees. Additionally, a temporary suspension of the gas feed line due to a leak caused a rise in diesel consumption. Fortunately, the leak was repaired in October, allowing the FSO to resume using gas instead of the more expensive diesel fuel.
In summary, BW Offshore is committed to responsible practices by ensuring the FPSO Petróleo Nautipa is recycled following the highest environmental and safety standards. The sale of the vessel will free up capital for BW Offshore, while Vaalco Energy focuses on future drilling endeavours at the Etame Field, having addressed the recent operational challenges.
