UN buys Euronav VLCC to replace FSO 'decaying' off Yemen

Project co-ordinators UNDP have contracted marine salvage company SMIT to remove the oil and prepare Safer for towing to a green salvage yard as part of what the UN has deemed a high-risk operation.

The UN has also called for more funding, relying on donations, and said it has in hand US$75M, with another US$20M committed, but the budget for the project’s "emergency phase" is estimated at US$129M.

"We must accept 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 we are deploying the best possible expertise to successfully complete this operation," UNDP administrator Achim Steiner said.

"While the project to remove the oil has received significant international support, spiralling 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 reached an agreement in principle to transfer the oil from the deteriorating vessel in February 2022.

Owned by Yemen Oil and Gas Corp, the Japanese-built FSO has been stranded in the Red Sea since the early days of the ongoing civil war in Yemen when it fell into the hands of Houthi forces.

Safer contains 1.14M barrels of oil worth roughly US$85M in today’s prices, making it an asset to the Houthi movement. But there are rival claims to the oil from the Yemeni Government. 

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