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


Shell Want Shipper Guarantees on Nigerian Crude Exports

Royal Dutch Shell has asked ship owners exporting its Nigerian oil to sign a "letter of comfort" (LoC) to guarantee it is not stolen, according to an email from the company seen by Reuters.

ICCOPR Approves Updated Oil Pollution Research Plan

The Interagency Coordinating Committee on Oil Pollution Research (ICCOPR) unanimously approved the Oil Pollution Research & Technology Plan (OPRTP) for FY2015-2021

Danish-South Korean Co-operation Strengthened

The Danish-South Korean Green Growth Alliance met for roundtable talks yesterday. The Minister for Business and Growth's meeting with the South Korean Minister

Tanker Trends

Traders Eye Floating Diesel Storage in Atlantic

Europe diesel stocks reach fresh record high; huge imports from Asia, Middle East weigh on supplies. Oil traders are preparing to store diesel in giant tankers

Tsakos Fixes Three LR2s on Timecharter

Crude, product and LNG tanker operator Tsakos Energy Navigation Ltd (TNP) announced the charter for an average of 36-months per vessel for its three LR2 Aframax

Amid Commodity Crisis, LPG Emerges as Accidental Bright-spot

Liquefied Petroleum Gas, long a niche product used by the poor to cook and the rich to barbecue, has become a rare bright spot amid a broad commodities rout, riding

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Repair 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: 0.1086 sec (9 req/sec)