I'm a big fan of the idea of "upcycling"... and there are a lot of great ideas in the world. This isn't one of them. I did laugh though. We need to come up with a name for these. And copyright it.
One of them could be fun, two definitely one too many. And peoples understanding of oil could be read in the comments where one said that you should switch to a superior fully synthetic oil for lubrication. Well, at least today, synthetic oil is made from the same crude oil as mineral oil...
10 Years ago I saw a project in Dubai. They will use the Tankers anchoring 3-6 miles from the coastline. I saw installations of wind and solar power units to produce Hydrogen. Also saw plans to use the Ships as floating factory for different types of production. In the end I think wrecking in India and use the steel for other Ships is the most common way.
A creative idea for sure. As far as practical..... 1) those things are kind out ugly when out of their elements, like when they are beached. 2) an empty tanker is noisy, everything echoes around on the inside, need expensive insulation. 3) steam cleaning and pressure washing the insides to get the stench out would cost millions, and it would still smell. 4) the insides are a bunch of individual tanks, not a wide open area ready for a village. Remove the bulkheads and individual tanks and you loose strength and the thing could collapse. 5) the tankers are made for a limited life span, no SS used. Lots of maintenance to keep rust at bay. Not so sure about the idea: I worked on tankers, I was the guy cleaning the tanks, knocking the rust off the decks, painting, steering, etc. The world's appetite for oil will soon increase again and tankers will be back in vogue, no need to turn them into towns or hotels or whatever.
Best way is to scrap them and recycle the material for something more functional. Stationary use of aging cruise ships as floating hotel, shopping mall, event location etc. sounds more reasonable than turning a rusting commercial ship into a luxury resort or something similar.
I was offered a job to run tankers of water from Dominica to Antigua. The Tug and platform/wedge was of pure water from the mountains. To our house in the hills took 4000gls and many $ of doll to fill in the draught.