Lyras Urges for Transparency

Thursday, February 13, 2003
"A massive decrease in the number of tanker operators is highly likely in the future as oil companies become increasingly exposed to liabilities related to their transport supply chain," Dimitris Lyras, advisor to the board of Ulysses Systems, told delegates at yesterday's Tanker Operations Conference in London. Oil companies must make sure that their transport supply chain stands up to scrutiny in any eventuality, Lyras asserts, otherwise they risk enormous penalties in public perception and stock valuation. An oil major's liability for an oil spill is far greater than the cleanup and claimant compensation, the real cost is from damage to their long-term image and reputation as responsible energy suppliers.

As oil companies seek to monitor their suppliers through vetting and self assessment initiatives, Lyras considers 400 transport suppliers for 7 oil majors to be an unsustainable situation. Consequently, he suggests only those ship operators who can demonstrate due diligence and best practice will be able to obtain charters from the major oil companies over the coming years. In order for oil companies to be able to monitor a large number of ship management operations, Lyras believes that one of the best ways forward is to allow the ISM audit process to supply ratings on certain areas of operation related to risk mitigation. This of course requires some commitment to internal transparency, not only so records of past operation can be studied but, above all, because internal transparency assists in creating internal awareness of the changes a ship operator is making. One of the major stumbling blocks to increased internal transparency is the fear that it can provide the legal fraternity with a reason to deny a claim. However so long as operators can demonstrate that they were aware of a fault and had addressed the problem, insurers should accept that this attitude is better than one of denial and deception. "We must enable oil majors to evaluate management," Lyras concluded. "It cannot be stressed enough that internal transparency is a key constituent to risk mitigation and to continuous improvement and must be encouraged both internally within the industry and externally by the legal fraternity who evaluate claims."

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Shell CEO Backs Fossil Fuels, Climate Change Warnings

The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said on Friday.

Pipeline Spill Could Hamper California Oil Projects

Hundreds of barrels of oil that gushed from a ruptured coastal pipeline in scenic California this week could stiffen opposition to large oil projects that companies want to build in the state,

U.S. Senators Urge Obama to Block Arctic Oil Drilling

A group of 18 mostly Democratic U.S. senators on Friday urged the Obama administration to stop Royal Dutch Shell's preparations for oil exploration in the Arctic,

Tanker Trends

HSH Bank to Split Off Bad Shipping Loans

German lender HSH Nordbank could split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model, according to a person familiar with the matter.

Gail to Sell LNG Supplies from US to Shell?

GAIL (India) Ltd has signed a preliminary deal with Royal Dutch Shell for the potential sale of liquefied natural gas (LNG) supply sourced from its portfolio, made up of US production,

How Do You Lose 100 Million Barrels of Oil?

Oil-market watchers are struggling to reconcile the large estimated oversupply in the market with the much smaller buildup of reported inventories and narrowing contango in futures prices.

 
 
Maritime Security Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1497 sec (7 req/sec)