Petrobras has sold one of its floating storage, production and offloading (FPSO) units for green recycling in Brazil in a move that has been welcomed by environmental groups.
In the first recycling project of its kind in the country, the Brazilian oil major sold the P-32 unit, which had been operating in the Marlim field, to steel company Gerdau for recycling at the Ecovix Shipyard.
Petrobras will supervise the recycling project.
The move comes as Petrobras prepares to recycle 26 similar offshore units in the coming five years at a cost of around $9.8bn.
Ship recycling lobby group NGO Shipbreaking Platform welcomed the company's decision to opt for green recycling in the decommissioning project.
“This significant move not only paves the way for the development of a recycling industry in Brazil but also sets an important precedent for the shipping and oil and gas sectors, encouraging other shipowners to adopt similar strategies for capacity building,” said senior communication and policy advisor at NGO Shipbreaking Nicola Mulinaris.
Mulinaris pointed out that oil major Shell and SBM Offshore have also adopted similar policies on recycling.
Petrobras had previously sold its offshore units for recycling to South Asia.
In February this year, Petrobras announced a new green recycling policy.
Executive manager of production and development projects Mariana Cavassin Paes said the policy would be based on the UN International Charter of Human Rights “with a focus on sustainability and ensuring a sustainable destination”.
The move also comes as an international recycling convention has reached its enter-into-force requirement.
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships will enter into force in two years’ time and open the door for shipowners to recycle ships at yards in South Asia that meet its safety and environmental requirements.
