BW Offshore is set to recycle its floating production, storage and offloading vessel Umuroa in compliance with the Hong Kong International Convention at the Baijnath Melaram yard in India.
The Oslo-listed said it would nominate a third-party to be on site at the recycling yard in Alang, Gujarat, to ensure health, safety and environmental regulations are followed.
The FPSO is currently cold stacked in Batam, Indonesia.
Its last job was at the Tui oilfield offshore New Zealand from where its disconnection and demobilisation was completed last May.
VesselsValue noted the unit, which has storage capacity of 125,505 cubic metres, was delivered in August 1981 from Japan’s Mitsubishi Heavy Industries.
“A Ship Recycling Plan has been prepared and provided by the yard in co-operation with the Gujarat Maritime Board in compliance with the above regulations. To further incentivise safe operations, we will pay a ‘safe recycling’ bonus upon completion,” BW Offshore said.
The sale of the Umuroa FPSO will generate $13.5 million in net liquidity.
Baijnath Melaram, which bills itself as “Recyclers, not Breakers” has recycled more than 325 vessels totalling about 1.8 million tonnes to date.
The yard is certified to ISO standards and has been issued with a Statement of Compliance by Class NK in accordance with the International Maritime Organisation resolutions and the Hong Kong International Convention for the safe and environmentally sound recycling of ships.