Euronav NV has announced that it has signed an agreement with the United Nations (UN) to sell a Very Large Crude Carrier (VLCC) as part of a wider salvage operation for the FSO Safer located in Yemen.
The company outlined in a statement posted on its website that it will provide a “suitable vessel” that will go to drydock for “necessary modifications” and regular maintenance before sailing to the FSO Safer for an operation to remove and store the FSO’s oil.
The vessel will replace the FSO Safer and will stay there, according to Euronav, which said it will help operate the vessel, including after the transfer of the oil, “for several months afterwards”. In a statement posted on its site, the UN outlined that the “replacement vessel” is expected to arrive in early May for the UN-coordinated operation, which it highlighted involves removing more than a million barrels of oil from the FSO Safer.
The UN also revealed in the statement that the UN Development Program (UNDP), which it said is implementing the “high-risk operation”, is contracting marine salvage company SMIT to remove the oil and prepare the Safer for towing to a green scrapping yard.
According to the UN statement, the FSO Safer has not been maintained since 2015 because of the conflict in Yemen and “has decayed to the point where there is an imminent risk it could explode or break apart”. A major spill would devastate fishing communities on Yemen’s Red Sea coast and result in the closure of the ports of Hodeidah and Saleef, the UN noted, adding that the cost of cleanup alone is estimated at $20 billion.
Disruptions to shipping through the Bab al-Mandab strait to the Suez Canal could also cost billions more in global trade losses every day, the UN warned.
Beginning of Operational Phase
“The purchase of this suitable vessel by UNDP marks the beginning of the operational phase of the UN-coordinated plan to safely remove the oil from the Safer and avoid the risk of an environmental and humanitarian disaster on a massive scale,” UN Development Program (UNDP) Administrator Achim Steiner said in an organization statement.
“We must accept that this is a very challenging and complex operation. UNDP is working around the clock with experts from UN sister agencies including IMO, WFP and UNEP among others as well as international consultancies on maritime law, insurance and environmental impact to ensure that we are deploying the best possible expertise to successfully complete this operation,” Steiner added.
David Gressly, the UN Resident and Humanitarian Coordinator for Yemen, said, “UNDP’s purchase of the vessel is indeed a major step, made possible by the generosity of donors, the private sector and global citizens”.
“The parties to the conflict continue to endorse the plan. Now we are into the operational phase and hopeful the oil will be removed from the Safer within the next three to four months. But we still urgently need funding to implement the plan and prevent disaster,” Gressly added.
Hugo De Stoop, the CEO of Euronav, said, “we are very proud to work with the UN in this delicate and sensitive operation in providing an appropriate vessel but also necessary expertise from our operational staff to support the salvage procedure”.
“This critical operation requires dedicated support from Euronav for at least nine months and reflects our wider sustainability and environmental credentials,” he added.
The UN noted in its statement that the project to remove the oil has received significant international support, but added that “spiraling costs, mostly related to the war in Ukraine that triggered a significant price increase in the market for suitable vessels to undertake the operation, mean more money is still needed to complete the emergency phase of the plan”.
The UN said it has raised $95 million as of March 7, of which $75 million has been received, according to the organization. The total budget for the emergency phase of the project is $129 million, the UN highlighted. To fill the budget gap, the UN said it is re-launching a crowdfunding appeal.
A Critical Step
Commenting on the UN’s agreement with Euronav, Ned Price, a U.S. State Department spokesperson, called it “a critical step in the implementation of the UN’s emergency plan to avert a regional environmental catastrophe, economic disruption in the Red Sea with global ramifications, and the exacerbation of the world’s worst humanitarian crisis”.
“We must maintain momentum to move the emergency operation to conclusion. The UN urgently needs $34 million more to transfer the oil from the Safer to the newly procured vessel. The United States, which has contributed $10 million toward this effort, will renew its work to galvanize further support to prevent this looming disaster,” Price added.
“We thank donors that have already contributed generously. The international community, including the private sector, must come together to address this imminent threat. Yemenis are already suffering from more than eight years of war; they cannot endure the loss of livelihoods in the fishery industry, disruption of access to food and water for millions, and the health complications from pollution that would result from a massive Safer oil spill,” Price continued.
To contact the author, email andreas.exarheas@rigzone.com
Photo Credit - iStock.com/ricardoreitmeyer
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