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Petrobras to recycle offshore unit in Brazil

Petrobras To Recycle Offshore Unit In Brazil

Petrobras, the leading energy company in Brazil, has made a significant achievement in its new commitment to sustainable ship recycling. They successfully concluded an auction for the disposal of a floating offshore platform called P-32, which has been operating in the Marlim field of the Campos Basin. The sale took place on July 7, 2023.

Petrobras collaborated with the steel company Gerdau S.A. and shipyard Ecovix to ensure the responsible and environmentally friendly recycling of the platform. This decision is particularly important because it marks the first time that a commercial vessel at the end of its life will be dismantled in Brazil. It not only opens the door for the development of a recycling industry in Brazil but also sets a crucial precedent for the shipping, oil, and gas sectors. This move encourages other ship owners to adopt similar strategies to build capacity and prioritize sustainability.

Over the next five years, Petrobras plans to retire at least 26 units, with an estimated investment of $9.8 billion dedicated to decommissioning activities. A few months ago, the company announced a new policy that mandates the recycling of vessels only in facilities equipped with dry-docks or impermeable surfaces with drainage systems. This approach ensures that the company joins the ranks of responsible ship owners who choose facilities with infrastructure that enables the safe and environmentally sound management of end-of-life assets. Competitors such as SBM Offshore and Shell have also embraced this approach.

For years, Petrobras had been selling old vessels for shipbreaking in South Asia, where the practices were often dirty and dangerous for the environment. However, the company has now committed to environmental stewardship by unequivocally rejecting such practices. Their decision to opt for a domestic solution, utilizing the state-of-the-art infrastructure available in Brazil, demonstrates that it is possible to find alternative and better solutions than beaching. This shift towards sustainable ship recycling is praised by Nicola Mulinaris, the Senior Communication and Policy Advisor at the NGO Shipbreaking Platform, as a positive step towards environmental responsibility.

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