Friday, 15/11/2019 | 5:04 UTC+0
Libyan Newswire

Arrested vessel carrying fuel oil discharges cargo at Singapore’s Vopak Sebarok terminal

A Suezmax oil tanker, Eurohope, which was arrested on April 25 in Singapore, has been released and has discharged the fuel oil cargo it was carrying at Vopak's Sebarok terminal in Singapore Wednesday, according to trade sources and court documents seen by Platts Thursday.

The vessel had been carrying fuel oil from its last port of call at Limassol, Cyprus to Singapore, cFlow, Platts trade flow software, showed.

The Liberia-flagged 159,539-dwt tanker was released April 29 at 6:59 pm (1059 GMT) from the Singapore authorities, and the wider issue surrounding the vessel arrest has yet to be resolved, said legal sources close to the matter.

The release came after the vessel's P&I club, the American Club, issued a letter of undertaking for the ship's release which guarantees that it will pay out any subsequent claims against the ship, legal sources also said.

The letter of undertaking also allows the ship to carry on its scheduled voyages, while awaiting for the dispute to be settled, they added.

Eurohope has a gross tonnage of 81,526 mt, nett tonnage of 50,672 mt and tonnage of 152,527 mt, according to court documents.

As of 2 pm Singapore time on Thursday, Eurohope is currently anchored off Singapore, Platts cFlow showed.

Representatives of the American Club and vessel operator Eurotankers did not immediately respond to Platts' requests for comment.

EARLIER DISPUTE OVER LIBYAN CRUDE OIL

The vessel arrest in Singapore came after UAE-registered DSA Consultancy sought Eurohope's arrest due to an earlier and separate dispute with the Eurohope's "owners/and or demise charterers of the ship" which is Eurotankers, court documents showed.

A vessel arrest is typically to secure a guarantee over an outstanding dispute which has yet to be resolved, legal sources said.

The earlier dispute between DSA and Eurotankers arose due to Eurotankers canceling a charter agreement concluded on February 25 this year, under which DSA had chartered Eurohope from Eurotankers to transport 135,000 mt of Libyan crude oil for loading over March 16-23 from Marsa el-Hariga to Malta, court documents showed.

The cargo had originated from NOC Benghazi, the documents also showed.

DSA was seeking to claim a sum of $405,000 from Eurotankers for canceling the agreement, and an email from DSA's legal team said damages for shutdown costs and lost sale revenue are in excess of $1.5 million, showed court documents.

Both parties disputed whether a down payment of $750,000 was made before the deadline at 3 pm Greek time (1300 GMT) on March 1, as not doing so would render the charter party null and void, court documents showed.

Eurotankers had also expressed in its correspondences to DSA its concern over legal implications of transporting Libyan oil cargoes that had been traded by NOC Benghazi and NOC Tripoli.

Platts was unable to contact the legal team at DSA for comment.

Since late 2014, Libya has been dominated by two regional governments that have been vying for control of its resources - one based in Tripoli and the other in the eastern town of Beida.

The dispute has intensified in recent months, despite the formation of a Government of National Accord, as the Beida government has established its own eastern equivalent of state-run National Oil Corporation, or NOC, and has been seeking to sell crude independently.

The North African state's oil output has fluctuated between 295,000 b/d and 380,000 b/d this year, a fraction of its total capacity of 1.6 million b/d.

Source: Platts

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