2.1.12Decommissioning
MANAGEMENT APPROACH
SBM Offshore is committed to the safe and environmentally sound recycling of assets at the end of their lifecycle, performed in compliance with SBM Offshore’s Responsible Recycling Policy, applying the Hong Kong Convention rules and the principles of the EU Ship Recycling Regulation 1257/2013 or equivalent.
The processes surrounding the end-of-life recycling of products are vital to sustainability and SBM Offshore works to ensure that responsible recycling is carried out and that internationally-recognized regulations are followed. SBM Offshore has a ’Vessel Decommissioning and Recycling Process’, which details the key steps in conducting the responsible recycling of an offshore production facility.
SBM Offshore works with recycling facilities that have suitable infrastructure, an adequate management system, including health and safety procedures in place, and trained staff. SBM Offshore’s process includes inspecting all vessels for hazardous materials identification and ensuring a controlled removal and disposal of such materials as part of the decommissioning and recycling of the vessel. SBM Offshore considers the environmental and social impacts related to the decommissioning and recycling activities of each vessel, with the objective of minimizing adverse impact while pursuing maximization of the circular economy.
2023 Performance
During 2023, two projects were in progress; the decommissioning and preparing for recycling of FPSO Capixaba and the recycling of the Deep Panuke MOPU PFC.
The recycling of Deep Panuke is being performed locally in Nova Scotia, Canada. Recycling is progressing as per plan and nearing 100% by end of 2023. Of the total mass of the Deep Panuke facility, 97% has been recycled, reused, or repurposed. The remaining 3% consists of waste, which was safely disposed of, meeting the environmental regulations of the local jurisdictions of Nova Scotia and Canada. Furthermore, this project contributed to Sustainable Development Goals by promoting local economic development, establishing traceable waste management streams and supporting habitat creation for a variety of marine species including the endangered Atlantic salmon through deployment of reef balls, built by the local Mi’kmaq community that were placed at several locations in the harbor.
The FPSO Capixaba offshore decommissioning scope is in its final phase. The unit has been disconnected from subsea production systems infrastructure and remains moored until it is transported to the recycling yard. For this purpose, SBM Offshore has signed a contract with Modern American Recycling Services Europe for the safe and environmentally sound recycling of the unit at its recycling facility in Denmark.
SBM Offshore is participating as a co-chair of the expert group of IOGP to promote responsible FPSO recycling. Areas of attention for this group are:
- Sharing of best practices and lessons, using experience from IOGP members.
- Developing good practice guidelines for FPSO decommissioning including for safe and environmentally responsible recycling in compliance with international and local regulations.
- Enabling supply chain availability and readiness by compiling forecast data on FPSO recycling demand.
- Engaging with external expert groups, NGOs, and other relevant stakeholders to learn about expectations and identifying common standards and best practices.
FUTURE
During 2024, SBM Offshore expects to begin dismantling and recycling FPSO Capixaba in Denmark. After the close out of the recycling of Deep Panuke, SBM Offshore remains committed to related sustainability projects. At the same time, SBM Offshore is supporting economic development in the region through commercial activities for floating offshore wind, together with its partners.