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 November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Denmark Issues New Pilotage Regulations

In an effort to make the pilotage market more efficient, the Danish Maritime Authority (DMA) issued several new regulations following on amendments to the pilotage act.

US Shippers, West Coast Dockworkers Union Resume Contract Talks

Negotiators for shipping lines and terminal operators at 29 U.S. West Coast ports resumed contract talks with the union for dockworkers on Thursday, as cargo backups continued at the ports,

Tanker Trends

Oil is on the Rise

Oil prices rose in early trading on Monday as Asian markets opened strongly into a holiday-shortened week and as consensus spread that Brent crude prices would

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Benghazi Port Still Closed, Imports Rerouted

The commercial port in Libya's second city, Benghazi, remains closed due to fighting between pro-government and Islamist forces, forcing wheat imports to make a detour via Tobruk harbour,

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1030 sec (10 req/sec)