Petrobras (PBR) Sells FPSO for Sustainable Recycling in Brazil
Petrobras (PBR) sold the P-32 floating, production, storage and offloading (FPSO) vessel for sustainable recycling. The vessel, which operated at the Marlim field in the Campos Basin, was sold to steel company Gerdau and the Ecovix shipyard on Jul 7, 2023.
According to Petrobras, the sale marked the beginning of a new phase in Brazil’s decommissioning industry because this would be the country's first commercial vessel to be dismantled at the end of its service life. The FPSO will be recycled in an environmentally sound manner under PBR’s supervision.
According to the NGO Shipbreaking Platform, Petrobras expects to retire at least 26 offshore platforms over the next five years, with an estimated investment of $9.8 billion in decommissioning activities. The company recently announced the adoption of a new policy that requires recycling of vessels exclusively at facilities equipped with dry docks or impermeable surfaces with drainage systems.
This stellar initiative places Petrobras among an increasing number of responsible ship owners who choose facilities with infrastructure that enable safe and environmentally sound management of their end-of-life assets, claims the NGO Shipbreaking Platform.
According to World Energy Reports, the P-32 FPSO, the first FPSO slated for recycling in Brazil, was constructed through a conversion of the 1974-built single-hull VLCC Cairu. Every step of the platform's recycling plan, from receiving the unit to disposing of the waste, will now be presented by Gerdau.
The Ecovix shipyard has an operating permit for the dismantling operation as well as an emergency and contingency plan to guarantee the highest standard of workplace safety.
Zacks Rank & Key Picks
Currently, Petrobras carries a Zack Rank #3 (Hold).
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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