Ship Breaking – Oil Industry

Oil Industry – Breaking Tankers, FPSO’s, Support Vessels and Oil Drilling Platforms

This problem is not limited to container ships and bulk carriers.

There is ample evidence that companies who have committed to good ESG /Sustainability practices and contract oil tankers, FPSO’s, Anchor Handling / Support Vessels and Drilling Platforms, need to be paying close attention to who they choose as suppliers . Whilst it has always been known that oil tankers have been broken on the South Asian beaches in the past, there is a worrying trend in the offshore oil industry with FPSO’s, Anchor Handling / Support Vessels, and Drilling Platform owners allowing their assets to be disposed on these beaches.

As just one example, our research shows that there is a global major drilling company, who in their sustainability reporting and website, uses phrases like ‘exemplifies a purpose and set of values that is focused on ethical behaviors, the protection of people, and minimizing our impact to the environment to provide/deliver responsible energy solutions to the world‘, ‘maintains an unwavering commitment to ethical behavior‘ and ‘We are committed to conduct business ethically and transparently‘.

Yet that same company, chose to dispose of 5 Drilling Rigs in 2020 and 3 Drilling Rigs to the beaches of Alang, India. This was not mentioned in their sustainability reports to investors and clients.

Having been personally involved in the procurement due diligence of one rig from this company in 2019, we can confirm this unsafe and polluting practice was not disclosed to potential clients.

Understanding what questions to ask, and understanding the answer, is critical to conducting effective ESG supply chain risk management when contracting FPSO’s, cargo ships, tankers and drilling rigs.

ESG Ship Vetting supports our clients manage their risk by conducting specialist due diligence expertise during the procurement process of chartering tankers and contracting drilling platforms.

See Further Information and Videos on Ship Breaking

BBC In Depth Analysis relating to Oil Rig and Ship Breaking