Short Sea Tanker Group Hamburg 3 December

Prest

Prestige possible effects

Seminar on European short sea tanker trade

Terminal vetting

Discrimination of foreign flags

MARPOL Annex II Revisions Council Meeting in Hong Kong

Prestige (Bahamas)

Built 1976, Hitachi Japan for MOC

DWT 81,564

Owner/Manager: Mare Shipping Liberia/Universe Maritime, Greece,

Member INTERTANKO (79)

Cargo: HFO/SG 0.99

Load port , Ventspils, Latvia

Discharge port, Singapore

Damaged 13 December - Sunk 19 December

Prestige – clean record ESP no 5 , ABS, Guangzhou, May

2001 Annual survey Dubai, ABS May 2002 

PSC inspection Rotterdam 1 Sept. ’99. 3 def.  

ISM certification, BV for July 2001 to 20 June 2006

Inspected St. Petersburgh

Crown Resources,Russia, no vetting

Petrian Shipbrokers sameas for ERIKA

Source: ABS

Departure loading condition (5 Nov 2002)Riga, Latvia

•Still water bending moment is 43% of allowable •Vessel stability in compliance with approved loading manual •CBT mode (clean ballast transit)

Prestige – 13-19 November 200213 November"explosive" sound and shudder at 15.10 hours.started to list in 5 minutes, 26 degrees stb after 15 minutes, waves up to 8 meters 24 crew evacuated 17:00, Captain, Chief Officer and Chief Engineer stayed on board,

19:00 LOF signed 25 miles off the coast 14 November

drifted close to the Spanish coast 06:00-08:00 Coast Guard and inspectors aboard for an assessment of the condition, 12:00 more crew re-joined,two tugs began to tow Prestige away from the coastestimated loss of some 3,000 tonnes of oil

Spanish authorities requested that the engines to be restarted, master concerned about additional stresses

Prestige – 13-19 November 2002 14 November Master asked to be granted a place of refuge the vessel was towed to a requested position some 70 miles off the coastprogressive deterioration of the vessel's condition salvage team reached the vessel by helicopter and engines stopped to reduce stressesestimated loss of some 3,000 tonnes of oil

15 November17:00, the master left the ship, whenthe Salvage Master decided that all personnel should leave the vessel. Prestige taken in tow by salvage tugs away from the Spanish coastline

18 Nov - towed further out to sea

19 Nov - 07:00 broke in two, 160 nm offshore, the two parts sank later in the afternoon at 3,500 m depth

Source: ABS

Source: ABS

ABS, 3 DecNo apparent structural cause has yet been determined

Source: ABS

”The ramifications of extensive structural repair in way of Frame 71 starboard in May 2001 require further evaluation”, ABS

Prestige – issues

Cause of accidentCollision with floating object?

Failing Structure LiabilityPort of RefugeArrest of Capt. Mongouras

The credibility of the industry is at stake again

Capt. Mongouras 32 years experience

Accidental oil spill from tankers tonnes spilt per billion tonne mile

transported

0

10

20

30

40

50

60

70

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02

Source: ITOPF/Fearnleys

Accidental oil pollution from tankers in relation to trade

0

300

600

900

1990-95 1996-02

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

000 ts spilt

bn tonne-miles

Source: ITOPF/Fearnleys

Oil spill in the world – mil gallons

0 50 100 150 200 250

Min al Ahmai Terminal, Kuwait*

Oil wells Russia

Ixtoc I well, Mexico

Bahra oil field, Iraq*

Castillo de Bellver South, Africa

Prestige, Spain**

Exxon Valdez, Alaska US

*war accidents, **whole cargo

252 million gallons

The largest is 21,000 million gallons; 700 oil wells in, Kuwait* 1991

Source: CNN

21 million gallons

Tanker incidents Jan-Nov 2002

8%

28% 29%

26% 9%

Collision Groundings

Hull&machinery:19 engine8 hull

Fire&Explosion

Misc.

dwt tankers involved :51 below 10,000 29 10-29,999 dwt25 30-99,999 dwt19 Above 100,000 dwt

Age tankers involved :29 built 1970s or earlier40 built 1980s36 built 1990s13 built 2000s, rest unknown

CNN Prestige survey

11,170

21,483

6,936

0 5,000 10,000 15,000 20,000

An inevitable priceof dependency on

oil

Avoidable andinexusable

Bad luck at thehands of Mother

Nature

  54%

  28%

  18%

Tanker structure/corrosion

ESP spring 2001, quality of steel replacement?

Storage with HFO containing

H2S Ballasting to rectify list,

strongly increased bending moment

Increased stresses du to restart of engine

Port of RefugePort of RefugeCould the ship have been

saved and pollution mitigated if the tanker had been taken into sheltered

water?

Phase out above 60,000 dwt

0

30

60

90

120

150

180

210

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

200,000

120,000-199,999

80,000-119,999

60,000-79,999

dwt range:122

Number

Phase out 5- 59,999 dwtnumber

183

7745 54

84

32 24 26 32 23 19 22

153

44

60

80 71

61

6039 26 23

22 22 26

43

0

30

60

90

120

150

180

210

240

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

20,000-59,999

5,000-19,999

HFO reported fixtures in Europe*Cargo tonnes

LoadArea

Europa M

ed

SE

Asia

US

Atlantic C

oast

US

Gulf

Mediterraean

UK

Continent

Other trades

Grand T

otal

Mediterraean 160 50 205 27 50 299 791Black Sea 150 478 70 44 1,622 50 438 2,852UK Continent 154 920 933 1,750 518 1,041 382 5,698Baltic 260 610 1,207 43 2,394 793 5,307Other trades 419 0 60 0 818 973 173 2,443Grand Total 883 1,708 1,878 3,001 3,028 4,508 2,085 17,091

* Europe: N Sea, Med, Black Sea, Baltic

HFO charterers

0 10 20 30 40 50 60

VitolUnknownChevron

AdamAlpine

NewtonEnelAgip

WestportBregana

KochBp

ShellHess

T T M IChemoilEl Paso

TotFinElfLia OilCrown

ExxMobRepsol >10 years

10-14 years

15-19 years

20-24 years

25-29 years

<30 years

Number

22 of 121 charterers35%, 53 charterers 1 fixture

Charterer Mil. cargo tsNaftex 4.9Karran 4.2Vitol 3.4Agip 3Alpine 2.6Sibnft 2.5Repsol 1.9Lukoil 1.6Koch 1.5ERG 1.4CTC 1.4Newton 1.2BP 1.2Crown 1.1ChevTex 1.1Laguna 1.1Others 21.3Total 55.4

Largest charterers of dirty oil, January until 21 November 2002Europe/Baltic/Mediterranean and Black Sea

Tankers up to 120,000 dwt built in 1982 and earlier.

Traders with limited vetting dominating chartering of old tankers

Evoikos ’97 28,000 ts S’pore

Nakhodka ’98 13,000 ts Japan

Erika ’99 20,000 ts France

Natuna Sea ’00 7,000 ts Indonesia

Baltic Carrier ’01 2,700 ts Denmark

Prestige ’02 77,500 ts Spain

HFO spills

USD

0

50

100

150

200

250

300

0 5 20 35 50 65 80 95 110 125 140 155

Fund 92

CLC 92

CLC 92Increase Dec 2003

Prestige

Voluntary

GT

Liability for oil pollution

number

Possible measuresDraft Council Conclusions:

Accelerated phasing out of single hull tankers , CAS from age of 15 years

Not accept SH tankers carrying the heaviest grades of oil…

25% target of Port State Control, EMSA, quality, uniformity inspections

Identify places of refuge for ships in distress

Control of maritime traffic along the coasts

Establishment of a supplementary compensation fund

Response capability strenthened

Modernisation of the tanker fleet takes place at a rapid pace

Possible measuresDraft Council Conclusions:

Ownercondition and operation of ship

Class structure of ship

Charterers type of cargo

selection of ship

Authoritiesport of refuge

clean up

P&Iclaims handling

Who is to responsible and who failed?

Overreaction counter-

productive

A sound industry needs

predictable contitions

INTERTANKO involvement Response to press – some 500 calls Supplying facts/statistics Meetings ABS/EU Commission With ITOPF at the scene in Spain Participate in ABS investigation International versus unilateral regulations,

make class work, against age discrimination, cargo receivers to finance COPE, rational and dispassionat debate,

long term effects of oil spill normally not serious