Teekay has agreed to scrap a small floating production, storage and offloading vessel at the Danish facility of Modern American Recycling Services (MARS).
The Petrojarl Banff (built 1998) is expected to arrive at the Frederikshavn yard before the end of the first quarter this year, the companies said.
The contract includes engineering, preparation, dismantling and green recycling of the unit, which has spent the past 21 years working in the North Sea.
“This contract award aligns with our strategy to increase our portfolio of complex green recycling projects including FPSOs,” US-based MARS said.
“We are glad that Teekay is choosing to retire and recycle the Petrojarl Banff FPSO in an environmentally friendly manner, at our approved European Union green facility …contributing to stimulate the growth of the circular economy.”
Green policy
Teekay has been undertaking a competitive tender process to select a green recycling yard that complies with all UK/EU regulations as well as its own vessel recycling policies to minimise health, safety, and environmental risks throughout the process.
“After careful review, Teekay has selected Modern American Recycling Services’ Europe’s EU-approved facility in the Port of Frederikshavn, Denmark, for the green recycling of the Petrojarl Banff FPSO,” it added.
The decommissioned unit has been moored at Kishorn Port since September 2020 following a three-month decommissioning programme of the FPSO and its associated systems as approved by the UK Offshore Petroleum Regulator for Environment and Decommissioning.
The work has included isolating, cleaning, flushing and disconnecting the FPSO from the subsea infrastructure as well as a comprehensive cleaning campaign in preparation for departure from the Banff field.
After the FPSO’s departure from the field, the decommissioning program shifted its focus on decommissioning the subsea assets. The remaining remediation work is expected to be carried out this summer.
Teekay describes itself as an early member of the Ship Recycling Transparency Initiative, and says its policies “go beyond” the Hong Kong convention to set a new norm for responsible ship recycling in the industry.
