Global Oil Tanker Industry Association, a pressure group of international oil traders have warned of the dire consequences of implementing Nigerian government’s recent ban of 113 oil tankers from henceforth operating in the country’s territorial waters.
The group, which sent a protest letter to President Mohammadu Buhari to rescind the order by directing the Nigerian National Petroleum Corporation (NNPC) to immediately lift the ban, said there was no sufficient reason for action in the first place.
Recall that NNPC had issued a letter on July 15, citing a directive from the Presidency, which said the vessels, mainly Very Large Crude Carriers (VLCC) oil tankers, were banned from calling at Nigerian crude oil terminals and also from Nigerian waters with immediate effect.
Industry Association of Independent Tanker Owners (INTERTANKO), whose members own the majority of the world’s tanker fleet, said in a letter to NNPC, dated July 22, insisted 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 wrote in the letter.
Since taking office in May, Buhari has been working to fulfill a campaign promise to tackle corruption, particularly in the oil industry. He has dissolved the NNPC board and ordered an investigation into a scheme through which the country swaps crude for oil products such as gasoline.
White said separately 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 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 said after INTERTANKO had spoken with its members in some cases the ship had not called in Nigeria for several years, or at all.
“In others, the ship has changed ownership since her last call in Nigeria,” White said.
“Members have also advised that some oil majors are attempting to introduce charter party 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,” she stated.