BW Offshore Sells FPSO Umuroa for Scrap
March 14, 2022
After it last month said it would recycle its FPSO BW Cidade de São Vicente, FPSO owner BW Offshore has now agreed to sell another FPSO for scrap, this time the FPSO Umuroa.
The company said Monday it had signed an agreement to recycle the FPSO Umuroa in compliance with the Hong Kong International Convention at Baijnath Melaram (‘the Yard’) in India.
"The sale will generate USD 13.5 million in net liquidity. 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 will nominate 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," BW Offshore said.
Converted to an FPSO from a 1981-built tanker, has an oil processing capacity of 50,000 b/d, and a gas handling capacity of 25 mmcf/d. It can store 775,000 barrels of oil.
The vessel was last deployed at Tui field, around 50 kilometers off the coast of Taranaki, offshore New Zealand, where it had been stuck for months in 2020, following the contract termination, client liquidation, and the country's court and environment regulator intervention. In November 2020, BW offshore and the government of New Zealand eventually reached a deal for the FPSO to be removed from the field.
The FPSO Umuroa has been in cold lay-up in Indonesia.