BW Offshore is sending the last of its older floating production, storage and offloading units to the breakers.
The Andreas Sohmen-Pao company announced on Friday that the 20,000-bpd Petroleo Nautipa (built 1975) would be sent to India’s Baijnath Melaram facility for scrapping in compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
The sale will free up $9m in liquidity, the company said.
The Petroleo Nautipa was the last vessel the owner intended to sell in its fleet renewal push, leaving it with three ships on the water and two under construction.
In the fourth quarter of 2023, BW Offshore declared its fleet renewal efforts over after it sold the 50,000-bpd Sendje Berge (built 1974) and was making moves to part with the Petroleo Nautipa.
Until that point, BW Offshore had freed up $331m in liquidity with the moves.
As part of the deal, the company will have personnel on site alongside third-party observers to ensure regulations are followed.
It will also pay a bonus if all the requirements for safe recycling are met.
