Oslo-listed floater specialist BW Offshore has signed an agreement to recycle its floating production storage and offloading (FPSO) vessel Petróleo Nautipa which previously worked offshore Gabon.
Andreas Sohmen-Pao’s company said that the recycling would be done in compliance with the Hong Kong International Convention at the Baijnath Melaram ship recycling facility in India. The sale will free up approximately $9m of liquidity.
BW Offshore personnel will continuously stay at the site during the recycling period, supplemented by additional competent personnel from a third party, to ensure health, safety, and environmental regulations are followed.
The company will also pay a safe recycling bonus upon completion provided the agreed requirements for safe recycling are met.
Since its conversion to an FPSO in 2002, the unit has been in operation at the Etame field off Gabon for Vaalco Energy until the contract was completed in 2022 and the unit was demobilised.
Over the course of 20 years, the contract has been extended multiple times, from a contract that was initially for two years firm plus three years of options.
