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The European Economic and Social Committee (EESC) and three Green Members of the European Parliament highlight the paradox between strict rules under OSPAR for the decommissioning of fixed oil platforms from the North Sea with rules that govern recycling of floating platforms and structures.[ds_preview]

The latter fall under the same rules as commercial ships, and would therefore have to follow the EU Ship Recycling Regulation. The NGO Shipbreaking Platform and other stakeholders have already highlighted the weakness of the SRR which needs to be coupled with a financial incentive to curb the trend to flag out and circumvent the legislation. A financial incentive is also being seen as an opportunity to steer the market towards proper recycling yards included under the EU list of approved facilities.

There are a growing number of unutilised and obsolete floating oil and gas structures which have been operating in the North Sea. These structures are effectively floating industrial plants, which need to be dismantled using the highest standards of precaution, many containing asbestos and residues of naturally occurring radioactive material (NORM). So far, assets from the North Sea have not ended up on the South Asian beaches with the infamous exception of the FPSO tanker »North Sea Producer«.

More rigs to end up in South Asia

The illegal export of the vessel from the UK to Bangladesh for scrapping is currently being investigated by the UK environmental authorities DEFRA. Maersk owned the FPSO tanker in joint venture with Brazilian oil and gas company Odebrecht, and sold it to a St Kitts and Nevis post box company established by cash buyer GMS. The FPSO was allowed to leave the UK under the false pretext that it would be further operationally used in Nigeria. Instead it was directly towed to the beach in Bangladesh.

Yet the NGO Shipbreaking Platform has observed more structures from other oil fields being towed across the globe to be beached in South Asia for scrapping. »There is a real concern that we will see more rigs and oil and gas assets ending up there, and cash buyers, such as GMS, and marine service providers, such as Aqualis, have had no shame in their efforts to attract the owners of these structures to sell them to the beaches,« the organisation said.

A business case for Europe

On 22 June the EESC hosted a conference attended by the members of the CCMI committee. The port of Fredrikshaven and the Spanish recycler DDR made it clear in their presentations that there is a real business case for Europe and the regions with a recycling capacity to be promoted through a financial incentive. Foreign investments are being made in Denmark to cater for the increased need to decommission the structures from the oil and gas fields in the North Sea. Trade unions also back the movement in support of a financial incentive which would boost the decommissioning and recycling industry and protect jobs in a heavy industry.

The European Parliament placed the focus on the EU Commission to broaden the interest of ship and rig recycling to other policy areas, such as growth, trade, energy, innovation and employment, to name a few.

»The only opponents to the idea that a clean industry should be promoted in all these aspects were the ship owners present. Most ship owners still do not see themselves as participants in finding sustainable solutions to cleaning up the recycling of their assets, which ultimately should be their responsibility,« the NGO reported.