23 July, 2015

NNPC, Buhari Ordered By Global Oil Tanker Association To Lift Ban

The global oil tanker industry association has threatened President in a letter of protest to Nigerian National Petroleum Corporation (NNPC) where it said the ban on 113 oil tankers by the parastatal must be lifted immediately.
 

President Muhammadu Buhari

Issuing the letter on July 15, NNPC gave the directive issued by President Muhammadu Buhari, that vessels, mainly VLCC crude oil tankers, were banned from calling at Nigerian crude oil terminals and also from Nigerian waters with immediate effect.

INTERTANKO the industry association, whose independent members own the majority of the world’s tanker fleet, stated in its letter to NNPC on July 22, that there were no “evidence or grounds” given for the ban. “INTERTANKO protests in the strongest possible way that these bans should be lifted with immediate effect until grounds and evidence for the ban have been given to each vessel and vessel owner/operator, and the owner/operator has had an opportunity to respond,” General Counsel Michele White was quoted in the letter.

PM News reported that White further said the list of banned tankers was “not exhaustive and already further tankers are being added”. Our current understanding is that these ships may have been targeted due to a failure to provide official outturn figures at their last call and/or commercial differences between load and discharge figures for cargo and free water,” White said in a separate note to the members. “This may also however be part of a general crackdown by President Buhari on corruption in Nigeria’s maritime, oil and gas, financial services and security sectors, including illegal bunkering and fuel sales.”

According to White, after INTERTANKO spoke with its members, in some cases the ship had not called in Nigeria for several years, or at all. In his words, “In others, the ship has changed ownership since her last call in Nigeria. Members have also advised that some oil majors are attempting to introduce Charterparty clauses requiring the owner to warrant that the vessel is not subject to any Nigerian bans or restrictions due to failure to report any outturn figures for prior voyages.”


Members have been advised by INTERTANKO to avoid such provision.