"Black Gold's Green Legacy": Opportunities arising from the restructuring of the European offshore oil and gas industry in the circular economy

Transcription

1 "Black Gold's Green Legacy": Opportunities arising from the restructuring of the European offshore oil and gas industry in the circular economy 22 th June 2017 EESC Jacques Delors Building, Room JDE 62, rue Belliard 99, 1040 Brussels

2 "Black Gold's Green Legacy": Opportunities arising from the restructuring of the European offshore oil and gas industry in the circular economy ANTONIO BARREDO - Managing Director - ddr Vessels XXI, S.L.

3 New Ship Recycling Yard designed and being built in accordance with the SRR and all EU laws on Waste Management and Worker Safety Fully Licensed & Ready to take EU ships up to 200m But also ready to grow for the larger vessels

4 European Ship Recyclers Group within the International Ship Recyclers Association Motive: Combine forces: a group of yards is stronger than one or two yards Objectives: Contest unfair competition from outside and within the EU Work together to reach >2.5MTn capacity

5 "Black Gold's Green Legacy": Opportunities arising from the restructuring of the European offshore oil and gas industry in the circular economy Part 1 22 th June 2017 EESC Jacques Delors Building, Room JDE 62, rue Belliard 99, 1040 Brussels

6 REGULATION (EU) No 1257/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 November 2013 on ship recycling and amending Regulation (EC) No 1013/2006 and Directive 2009/16/EC Article 3 Definitions (1) ship means a vessel of any type whatsoever operating or having operated in the marine environment, and includes submersibles, floating craft, floating platforms, self- elevating platforms, Floating Storage Units (FSUs), and Floating Production Storage and Offloading Units (FPSOs), as well as a vessel stripped of equipment or being towed; DIRECTIVE 2008/98/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 November 2008 on waste and repealing certain Directives Article 3 Definitions 1. waste means any substance or object which the holder discards or intends or is required to discard; 2. hazardous waste means waste which displays one or more of the hazardous properties listed in Annex III;

7 FROM THOSE TWO DEFINITIONS Rigs, as any other vessels, should be managed and treated as TOXIC/HAZARDOUS WASTE, And, if related to EU, Can only be dismantled in a EU LISTED YARD (for vessels only if they are larger than 500GT, non-public, non-military)

8 WHY IS IT NOT HAPPENING? Circumvention of regulations and legislation by owners - lack of protection, control & severity from EU+MS when this happens* Unfair competition offering substandard services for a better price within the EU - MS/local Administrations not enforcing regulations due to lack of knowledge and/or interest* Public administrations themselves looking for the higher price - not the compliant yards or the correct management*

9 Example of selling a Spanish Ship to Turkey vs Spain 1500ldt 1974 SHIP ddr TURKEY Price per Ldt as is where is 90 /tn 54 /tn Tug transport cost 0 /tn 100 /tn Price if at destination yard 90 /tn 154 /tn Charter to Turkey /tn ( ) Costs of travel -0 /tn -40 /tn ( ) Total Outcome Re-Flagging (2.400 ) -- 1,6 /tn (2.400 ) Total w/ Re-Flag

10 Example of breaking a ship in sub-std EU yard vs listed yard (Spain) 1500ldt 1974 SHIP ddr Spanish Sub-std yard Price per Ldt delivered 90 /tn 125 /tn Dismantling+fix costs 120 /tn 85 /tn Total cost Income from scrap steel 205 /tn 205 /tn Income from others 25 /tn 25 /tn Total income Benefit

11 Example of breaking TOXIC ships inturkey vs dismantling in Spain 3300Ldt 1974 Frigate SPAIN TURKEY Adquisition cost in Price per Ldt as is where is 130 /tn 292 /tn Tug transport cost 10 /tn 45 /tn Dismantling cost Asb/TBT/PCB decont. 135 /tn ( ) --?? Rest of dismantling 100 /tn 75 /tn Estimated income In /tn 490 /tn 576 /tn Estimated Gross benefit Around Around

12 CONCLUSION There are clear benefits from taking the wrong path for owners, for intermediates and for buyers But there are no benefits for either workers or environment And for the MS, the benefit is unreal the difference in price paid is easily covered by the employment created, the money moved in the country, the taxes reverted...

13 CONCLUSION There are challenges upon EU ship recyclers starting with limited / ineffective law enforcement or unfair competition all in the hands of the MS But we are here, we exist, and we can offer an attractive solution already, not in the future, but right now a solution that offers a modern new industry and will create new direct and indirect jobs all over the EU

14 CONCLUSION Give us a strong regulation (control, financial incentives...), to make sure EU ships, including all these rigs, are dismantled in sustainable listed yards Make sure MS do follow and implement the rules THEN We will grow the Capacity of certified ship recycling yards and the size and type of vessels broken

15 THANKS