INTERTANKO Livid Over Nigeria Tanker Ban

By Jonathan Saul

LONDON, July 23 (Reuters) – A ban on 113 oil tankers by Nigerian state oil firm NNPC should be lifted instantly as no grounds have been given for the measure, the worldwide oil tanker business affiliation mentioned in a letter of protest.

NNPC issued a letter on July 15, citing a directive from President Muhammadu Buhari, which mentioned the vessels, primarily VLCC crude oil tankers, had been banned from calling at Nigerian crude oil terminals and likewise from Nigerian waters with rapid impact.

Industry affiliation INTERTANKO, whose unbiased members personal the vast majority of the world’s tanker fleet, mentioned in a letter to NNPC, dated July 22, that there have been 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 wrote within the letter.

Since taking workplace in May, Buhari has been working to satisfy a marketing campaign promise to deal with corruption, notably within the oil business. He has dissolved the NNPC board and ordered an investigation right into a scheme by means of which the nation swaps crude for oil merchandise corresponding to gasoline.

“The timing of the ban is clearly a political signal to show the Buhari administration is clamping down on oil theft,” mentioned Alex Vines, head of the Africa Programme at Chatham House.

“The challenge now is for the Nigerian authorities to provide credible proof that these indexed vessels were engaged in illicit activities.”

A pattern of 75 vessels on the listing that Reuters tracked confirmed solely round 14 had been to Nigeria or neighbouring international locations within the final 180 days.

INTERTANKO’S White mentioned the listing 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 mentioned in a separate observe to 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.”

White mentioned after INTERTANKO had spoken with its members in some circumstances the ship had not known as in Nigeria for a number of years, or in any respect.

“In others, the ship has changed ownership since her last call in Nigeria,” White mentioned.

“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.”

INTERTANKO mentioned it had suggested members to keep away from such a provision.

“Owners whose vessels are blacklisted will have to be careful that they do not commit to trading to Nigeria whilst the threat of detention hangs over them,” mentioned Stephen Askins with delivery legislation agency Tatham Macinnes.

“It is likely further vessels will be subject to the blacklisting,” he mentioned in a observe. (Additional reporting by Simon Falush and Amanda Cooper, Editing by Pravin Char and David Evans)