Environmental impact

BW Offshore is engaged in the transition to renewable energy sources. This both poses new risks and creates opportunities  to leverage four decades of offshore development and operations experience to develop new low-impact solutions for clean energy production.

Our environmental impact is determined by assessing operational performance against key performance indicators. The Board of Directors and Senior Management review fleet-wide environmental performance on a quarterly basis. All employees within the organisation have real-time access to the fleet’s environmental performance statistics.

Flaring of associated gas represents the largest share of the fleet’s greenhouse gas emissions. For legacy assets where the field developer has not provided infrastructure to efficiently utilise associated gas, we work with our clients to investigate future technologies that may enable the conversion of associated gas feedstock into clean hydrogen-based energy sources. In addition, we seek to reduce flaring by maximising operational efficiency and limiting interruptions.

For new FPSO prospects, we implement closed flare and vapour recovery systems to ensure best available technologies are integrated into the design. These systems significantly reduce the operational carbon footprint compared to traditional direct venting of hydrocarbons, as well as improving operational safety.

Gas flaring is normally a condition of the licence holder's regulatory consent to operate to ensure responsible management of natural resources and maximise the licensing State’s economic recovery. The FPSO operator’s influence is limited to minimising operational irregularities that may lead to excess gas flaring and to maintaining the availability of gas processing systems.

Improved energy efficiency is integrated with BW Offshore’s climate action goal. We have two main ways of improving fleet-wide energy efficiency:

• Maximising use of the cleanest and most readily available fuel sources for power generation, and minimising GHG emissions associated with transporting bunker fuels to the facility.
• Reducing total energy demand, fuel consumption and GHG emissions, through maintaining optimal operations and ensuring systems and equipment

We monitor power and heating consumption at onshore sites and seek to implement energy-saving measures, including selecting energy-efficient consumables and partnerships where applicable.

The transportation and onshore processing of offshore-generated waste is managed through licensed waste disposal companies contracted by our clients.

BW Offshore fleet operations seek to reduce waste by strengthening material inventories management, establishing systems to reduce inefficiencies. Offshore personnel and onshore support teams have access to digital systems that track inventory stocks including procurement and use of materials over time. This digital system makes it easier to visualise inventory stock flows, plan and optimise procurement.

These measures have reduced consumables inventories, improved management of consumable stocks and reduced the risk of over-supply and waste generation.

The most significant short-term impact to the marine environment and regional biodiversity associated with BW Offshore operations would be a significant oil spill event.

All our assets perform scheduled annual oil spill response drills to test their responsiveness and preparedness for unplanned oil pollution events.

All fleet planned effluent streams (produced water, sewage, engine room bilges, cooling  water and food wastes) have been discharged within regulatory requirements and industry guidelines. Produced water discharges across the BW Offshore fleet are well within the World Banking Group guideline limit of 29ppm (parts per million) oil in water content  (monthly average).

We are committed to ensuring all permissible effluents are minimised and comply with local regulatory requirements and industry guidelines. Asset integrity checks ensure the systems that control shipboard effluents are fully functional.

We are committed to protecting local habitats and native wildlife in the areas where the we operate. The potential impact on biodiversity is included in the licence holder's environmental impact assessments and monitoring programmes, which are subject to local regulatory approvals.

Biofouling and ballast water are specific maritime hazards that are relevant only when an FPSO relocates from one location to another. The hull, appendages and seawater systems provide an opportunity to transport non-native, invasive marine species between locations, which can lead to the displacement of native marine species and alter the natural biodiversity at transit points or at the final destination. We follow applicable local regulatory requirements when relocating assets.

Ship recycling is inherently sustainable, involving the maximum material recovery of an end-of-life asset. Nonetheless, we are aware that ship recycling practices can also pose unacceptable risks to the environment, human health and safety due to unsustainable recycling practices. We have integrated safe and sustainable ship recycling practices that comply with the IMO Hong Kong Convention into its corporate operational standards and procedures.

All recycling projects are delivered with hazardous material inventories. BW Offshore’s policy on ship recycling is to ensure any vessel owned by us (or sold to an intermediary with the intention of being recycled) is recycled at a yard that operates in accordance with the Hong Kong International Convention for the safe and environmentally sound recycling of ships.