3.2.3Decommissioning
ESRS 2 SBM-2; SBM-3; IRO-1; MDR-P; MDR-A; MDR-M; MDR-T
SBM Offshore has identified key material impacts, risks, and opportunities (IRO) related to decommissioning resulting from the DMA. This information guides SBM Offshore in continuously improving the management of decommissioning in its operations, as further discussed in this section.
Decommissioning material impacts, risks, and opportunities
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Decommissioning | |||
Positive impact | Developing a safer removal of hazardous materials plan that helps to increase responsible decommissioning practices in SBM Offshore’s value chain and reduce potential environmental impacts. | own activities | short- and medium-term |
Opportunity | Applying the circularity principles in the decommissioning plan in order, for example, to maximize the circularity and possible mitigation of operational and financial exposure. | own activities | short- and medium-term |
Negative impact | Potential occurrence of negative environmental and social impacts during the decommissioning process, including those related to hazardous materials removal and waste generation. | own activities | short- and medium-term |
Risk | High cost of a responsible decommissioning process, including potential delays due to compliance with Legal and Regulatory Framework | own activities | short- and medium-term |
OUR APPROACH
Policies and Governance
SBM Offshore is committed to the safe and environmentally responsible recycling of assets at the end of their lifecycle. This commitment aligns with its Responsible Recycling Policy, which adheres to the International Convention for the Safe and Environmentally Sound Recycling of Ships (the ‘Hong Kong Convention’)1, as well as the EU Regulation 1257/20132 on ship recycling or equivalent standards. To achieve this, SBM Offshore collaborates with specialized suppliers and ship recycling facilities that meet strict requirements. These include having the appropriate infrastructure, qualified personnel, demonstrating compliance with the United Nations Guiding Principles on Business and Human Rights (UNGP) and applicable international regulations, and having an effective management system in place that incorporates satisfactory health and safety procedures.
During each project, experts inspect assets to identify hazardous materials and oversee their controlled removal and disposal. Through these measures, SBM Offshore aims to minimize negative environmental and social impacts while maximizing opportunities for circular economy practices in vessel decommissioning and recycling. SBM Offshore has established processes that outline the key steps for safely decommissioning offshore production facilities and supporting responsible recycling.
SBM Offshore provides for the demobilization costs associated with the vessels and floating equipment at the end of their operating lease periods, in accordance with contractual terms. These provisions are disclosed in the Financial Statements3.
The Decommissioning and Recycling subject matter expert is assigned to the Group Decommissioning Manager, while governance on the topic is overseen by the Managing Director of Operations, who is also a member of the Executive Committee.
Performance
In 2025, SBM Offshore advanced its approach to responsible asset lifecycle management by strengthening project preparation and reducing execution risks. SBM Offshore developed strategic decommissioning and recycling plans for offshore production facilities expected to cease production by 2029, excluding the Thunder Hawk FPU and FPSO Aseng units, whose divestment was completed in December 2025. These plans provided key evidence supporting the 2025 Decommissioning and Recycling Group Balance Scorecard (GBSC) performance. The related metric definitions were reviewed by both the Management Board and the Supervisory Board.
Additionally, after completing the Deep Panuke MOPU Production Field Center recycling project in 2024, SBM Offshore advanced its activities in 2025 by progressing with the recycling of FPSO Capixaba. This project is currently underway, following industry-leading policies and best practices.
FPSO Capixaba
The FPSO Capixaba was successfully towed in 2024, in compliance with applicable regulations, including the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, and the EU Regulation 1013/20061 on shipments of waste. The vessel was delivered to the M.A.R.S. ship recycling facility at the Port of Frederikshavn in Denmark, which holds an International Ready for Recycling Statement of Compliance issued by the American Bureau of Shipping.
Recycling activities progressed throughout 2025 under the oversight of SBM Offshore, with the vessel safely moored and allocated on the ramp as planned. The project has now entered its final phase, which includes decontamination, disposal, and dismantling, with completion anticipated in 2026. The FPSO Capixaba recycling project marks a significant milestone for SBM Offshore, reflecting the collective efforts and investments of employees, partners, and suppliers to facilitate efficient and environmentally responsible decommissioning.
Industry Collaboration
SBM Offshore actively participates in decommissioning and recycling forums to share expertise and insights with key stakeholders. Since 2023, SBM Offshore has co-chaired the IOGP FPSO Decommissioning Expert group and, in 2025, joined the IOGP Decommissioning Standing Committee, which aims to develop and promote best practices for safe, environmentally responsible, and cost-efficient decommissioning of O&G assets. Key activities at the IOGP decommissioning working groups include:
- Sharing best practices and lessons learned from the experiences of IOGP members.
- Developing guidelines for FPSO decommissioning and recycling.
- Enhancing supply chain availability and readiness by compiling decommissioning demand forecast data.
- Collaborating with external experts, NGOs and stakeholders to align expectations and establish common standards, decommissioning policy and guidance worldwide.
FUTURE
In 2026, SBM Offshore will advance its commitment to safe and environmentally responsible recycling of the FPSO Capixaba in Denmark. SBM Offshore aims to improve the decommissioning and recycling performance of its fleet by focusing on rigorous project planning, streamlining and standardizing management systems, and incorporating best practices for continuous improvement. These efforts reinforce SBM Offshore’s strategic focus on sustainability, operational excellence, and risk mitigation in all of its decommissioning and recycling operations.