UK misses out as Foinaven FPSO to head to Denmark

The Foinaven FPSO is to be sent to Denmark for decommissioning, Energy Voice understands, as UK yards miss out on the work.

Industry sources, who did not wish to be named, confirmed the vessel will head across the North Sea for dismantling.

It is understood the ship will be going to the MARS facility at Frederiskhavn, following other former Teekay vessels like the Banff FPSO.

The vessel, which operated off Shetland for BP for 25 years, is currently laid up at Hunterston for removal work of BP equipment and signage.

Its current owner Teekay has not responded to a request for comment, nor did the MARS facility at Frederikshavn.

No comment was provided by the Scottish Environmental Protection Agency (SEPA), but has previously said it would prefer for decommissioning to be carried out domestically. ­­

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Foinaven’s destination of Denmark comes following a run of UK-based assets heading overseas for dismantling, including the aforementioned Banff FPSO, and the Balmoral platform which both went to Frederikshavn.

Recently the Brae Bravo platform also went to Vats in Norway for dismantling.

The North Sea Transition Deal, signed last year with the UK Government, committed the sector to a 50% local content target for decommissioning – however this is only a voluntary goal in place by 2030; when much of the sector’s assets will already have been sent for decommissioning.

Industry has suggested that lucrative plugging of wells is a good way to meet that goal, rather than dismantling work.

Decommissioning of oil and gas fields in the UK are subject to taxpayer rebates for a portion of the costs.

Atlas Decom, which owns the Inchgreen drydock some 20 miles away, had hoped to take on the work.

© Supplied by Alan Newby

Director Michael Dixon said Atlas would still “work tirelessly” to offer Inchgreen as a solution to the successful bidder, but added “if we aren’t afforded the opportunity to engage in the supply chain we wish the disposal contractor all the success in achieving a safe disposal solution”.

The BP Foinaven oilfield in the West of Shetland is currently shut in following removal of the FPSO – though the field itself is not being decommissioned.

The decision on the dismantling of the vessel lies with Teekay – though BP chose Hunterston on Scotland’s west coast for the small contract to remove its signage.

A spokesperson said: “BP can confirm work is progressing at Hunterston to prepare the Petrojarl Foinaven floating, production, storage, offload (FPSO) to be handed back to its owners, Teekay Corporation.

“Once handed back, Teekay will reassume responsibility for the vessel and its future plans, including any decision on vessel recycling.”

The FPSO had been in production at the Foinaven field off Shetland since 1997, but a series of safety issues and the ship reaching the end of its design life led to BP deciding to remove the vessel last year.

It arrived at Hunterston earlier this month.