Oil bet gone wrong: rusting tankers and rigs clog up Asian waters


Dateline 2016-09-22, Reuters:

Some 15 km (9 miles) from the bustling port of Singapore, a rusting tanker as big as the world’s largest aircraft carriers lies idle in a muddy estuary flanked by mangrove trees on the coast of southern Malaysia.

The 340-metre (1,115 ft) “FPSO Opportunity”, a hulking so-called Floating Production, Storage and Offloading (FPSO) vessel capable of drilling for oil in deep waters, is currently surplus to requirements along with scores of other rigs, tankers and support vessels in an era of cheap oil.

The fleet of mothballed giant vessels anchored around Southeast Asian waters is the physical fallout of an oil downturn heading into its third year, and a stark reminder of how badly the industry miscalculated market conditions.

 

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