India, Bahrain launch Middle East’s largest ship recycling facility, processing ULCC-class vessels, offshore assets

INDIA/BAHRAIN – India’s Priya Blue Group and Bahrain’s ASRY have launched a joint venture ship recycling facility in Bahrain, capable of processing ULCC-class vessels, FPSOs, and drilling rigs using dry dock, slipway, and alongside recycling methods.

The facility will follow international environmental standards including the Hong Kong Convention and the EU Ship Recycling Regulation, targeting shipowners looking for approved and environmentally safe recycling options. 

Priya Blue’s affiliated cash buyer, Best Oasis, will support the project by sourcing ships and managing their commercial purchase before they are sent for recycling in Bahrain. 

This is the first time a major Indian ship recycling company has expanded a large-scale operation outside South Asia. 

The identity of the first vessel sent to the Bahrain yard has not been disclosed.

Closing the Geography Gap

Most large-scale ship recycling takes place in South Asia (India, Bangladesh, Pakistan) and Turkey. 

For shipowners operating in the Gulf region, sending a vessel to Alang means a weeks-long voyage through pirate-risk waters, consuming fuel and crew time. 

A recycling facility in Bahrain cuts that transit time and reduces the carbon footprint of the disposal voyage. 

The facility’s ability to handle ULCC-class vessels (Ultra Large Crude Carriers, over 320,000 deadweight tonnes) means that even the largest tankers can be recycled in-region rather than sailing to South Asia.

Offshore Asset Recycling

The facility will handle offshore energy structures including FPSOs (Floating Production Storage and Offloading vessels), FSOs (Floating Storage and Offloading units), and drilling rigs. 

These assets contain hazardous materials, naturally occurring radioactive material (NORM), heavy metals, and hydrocarbon residues, that require specialised handling. 

ASRY already has licences to handle and dispose of NORM waste, which is critical for recycling offshore oil and gas assets and ageing production platforms. 

A rig that has spent decades pumping oil contains contaminated piping and tanks; recycling it without proper NORM handling creates environmental and worker safety risks.

Compliance as a Market Advantage

The facility’s compliance with the Hong Kong Convention and EU Ship Recycling Regulation gives it access to a market segment that non-compliant South Asian yards cannot serve. 

For European shipowners, recycling a vessel at a non-EU-approved facility is not an option. Priya Blue said on social media that the project is a “planned expansion of an established business” and not an experimental project. 

Priya Blue has recycled more than 60 vessels, including drillships and ULCCs, with past clients including Stolt Tankers, Transocean, NYK, MOL, and K Line.

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