The provider of floating production services to the oil and gas industry BW Offshore has signed an agreement to dispose of the FSO Belokamenka for recycling in compliance with the Hong Kong Convention.

The Oslo-listed company said in a press release that the FSO Belokamenka  is an Ultra Large Crude Carrier (ULCC) of 360,700 deadweight-ton capacity built in Japan in 1980.

The vessel is 340.5 meters long, 65 meters wide and has a depth of 31.5 meters. It is flagged and registered in Panama and classed by DNVGL, and has been in lay-up off Indonesia since completing a contract as a crude oil terminal off Murmansk, Russia, in late 2015.  

The vessel is sold for a cash consideration of approximately USD 20 million.

To date the recycling yard has not been chosen. The buyer of the vessel will ensure that the chosen yard is certified to ISO 14001 and OSHMS 18001 standards, the Hong Kong Convention and the IMO 2012 guidelines. The buyer will further ensure that the recycling yard provides a statement of completion of the recycling in accordance with the Hong Kong Convention.

A recycling plan will be prepared and provided by the yard to ensure strict compliance with the above regulations. The company will nominate a representative to be on site at the recycling yard to monitor progress, compliance and that the recycling plan is being applied.