NNPC lifts ban on 113 oil tankers


The Nigerian National Petroleum Corporation has lifted its ban on 113 vessels from engaging in crude oil/gas loading activities in any of the terminals within the nation’s territorial waters.

The letter, dated September 8, said President Muhammadu Buhari had approved the consideration of all incoming ships subject to a letter guaranteeing that they would not be used for any illegal activity.

It also stated that the President had approved the establishment of an inter-agency committee made up of the Department of State Services, Nigerian Maritime Administration and Safety Agency, Nigerian Navy, Department of Petroleum Resources and the Nigerian National Petroleum Corporation to investigate the activities of the banned vessels within Nigerian territorial waters.

The NNPC stated this on Thursday, confirming that it had lifted the embargo earlier placed on the vessels.

Although the notice referred to 113 tankers on the ban list, an analysis by Platts showed that the number of vessels actually totalled 102 when duplicate vessels were removed.

The ban had been lifted, several shipping industry officials also told Platts, citing the September 8 communique.

“The President has graciously approved the consideration of all incoming vessels into the Nigerian territorial waters subject to receipt of a Letter of Comfort from all terminal operators and off-takers of Nigerian oil and gas as guarantee that nominated ships are free and will not be utilised for any illegal activity whatsoever,” the letter, issued by the NNPC and seen by Platts, said.

“The President has directed the review of activities of all the affected ships to determine the culpability or otherwise in illegal operations within our territorial waters,” the NNPC letter signed by the Group General Manager, Crude Oil Marketing Division, Mr. Mele Kyari read.

Request for vessel clearances and documentary instructions must be accompanied by the Letter of Comfort indicating that these ships would not be involved in illegal activity, Kyari added in the letter.

The ban was imposed by the NNPC on July 15 this year without citing any reasons.

The tankers, according to a document signed by the Group General Manager, Crude Oil Marketing Division, NNPC, Mr. Gbenga Komolafe, were prohibited from entering Nigerian oil facilities and territorial waters.

The document said, “The NNPC has prohibited 113 tankers from engaging in crude oil/gas loading activities in any of the terminals within the Nigerian territorial waters until further notice.”

The letter was dated July 15, and addressed to terminal operators in Nigeria, while the tankers were listed in an attached spreadsheet.

It added, “The affected vessels have also been barred from movements within the Nigerian territorial waters forthwith.

“Finally, enforcement of the above directives takes immediate effect pending a notice to the contrary by the government, please,” the NNPC stated.

The ban was interpreted by market participants as having been imposed to curb illegal shipping of crude out of the country.

“It is a welcome move because many ships were not calling at Nigerian ports due to the ban,” a dirty tankers broker in North Asia was quoted as saying.

Many members of the International Association of Independent Tanker Owners were not sending any of their ships to Nigeria because of fears they could be impounded, a VLCC broker in Singapore said.

These included even those ships, which were not on the list of those prohibited by the Nigerian authorities.

Intertanko is one of the largest groupings in the shipping industry, with 207 full members and 285 associate members, and a registered fleet of over 3,000 tankers of over 270 million dwt.

Following the ban of the tankers, Intertanko had protested to the NNPC, saying in a letter by its General Counsel, Michael White, “Intertanko protests in the strongest possible way that this ban 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.”

Intertanko noted that no reference was given to policies and requirements relating to the ban or evidence of why individual vessels had been banned.
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