NEWSLETTER No. 2 /15 Nigeria Blacklisting of Crude Oil Tankers 29th July 2015 On15thJuly2015theNigerianNationalPetroleumCorporation(NNPC)issuedalistof113tankers banned, with immediate effect, from engaging in crude oil / gas loading activities in any terminal within NigerianterritorialwatersThedirectivealsoaffectsthemovementofthebannedvesselswithin Nigerian territorial waters. For ease of reference we attach a copy of the issued directive which NNPC senttotheterminaloperatorssettingouttheNigerianportsinvolvedandthelistofcurrentlyaffected crude oil vessels. Whilst the reasons for the prohibitions are not explained in the directive, speculation suggests that earlier this year the Nigerian Authorities introduced a requirement that all tankers loading crude from Nigerian terminals were to complete an out-turn verification exercise (OVE) at the discharge port. It is thought that the recent directive is linked to this initiative, even if it is not clearwhich rules or regulations may have beenallegedlybreachedbytheaffectedOwners.Theinternationalshippingassociation,Intertanko,is reported to have made contact with NNPC to voice objections to the ban. It is believed that the list may not be final and more vessels could be added. Indeed the list appears to comprise principally of voyages performed in the months of June and July to Far East destinations. It is thereforepossiblethatfurtherrevisions/additionsofvesselstothislistwillbemadeastheAuthorities continue their investigations.Furthermore it is noted that a degree of confusion surrounds the list issued sincevesselnames,IMOnumbersandmentionedownershipappearinsomeinstancestobe inaccurate. Industry commentary also suggests that some listed vessels may not have actually called in Nigerianportsrecentlyoratall.ItishoweverclearthataffectedOwnersruntheriskofseeingtheir tankersdetainedbytheNigerianAuthoritiesiftheycontinuetradeinNigerianwaterswhilststill appearing on the blacklist. Thereareanumberofcommercialandlegalissuesthatshouldbeconsideredwhencontemplating tradingtoNigeriatoloadcargo.WearegratefultoTathamMacinnesLLPwhohaveallowedusto circulatetheirrecentarticlewhichexaminesinfurtherdetailsomeimportantaspectstobeconsidered following this new directive. The issues considered include; -Owners remedies and hire under time charterparties; -Delay claims; -Legitimacy of voyage instructions;-Owners trading warranty; -Responsibility as between Owners and Charterers for providing official outturn figures. Giventhecommonexclusionsthatexistininsurancepoliciesrelatingtooperatinginbreachoflawful trading, cover for losses arising from a vessel being detainedpursuant to the NNPCs directive is likely to be subject of debate on a case by case basis. Wewouldsuggestthatduecareandattentionistakeninviewoftheforegoingandwewould recommend that Owners and Charterers review charterparty arrangements for trading to Nigeria. Please contact us if assistance in seeking guidance from your P&I Club is required in this regard. This Newsletter, and our information archive, can also be accessed at www.plferrari.com P. L. Ferrari & CO. S.r.l. This newsletter is intended solely as an overview of the Marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of printing and we cannot be held liable for the omission or inaccuracy of any information within the newsletter. GENOAMONACOPIRAEUS NAPLES ISTANBULFERRARALONDON NEW YORK (an exclusive cooperation with Crystal and Company)