Original 1971 Oil Pollution Compensation Fund Closes

MarineLink.com
Wednesday, November 06, 2013
Photo: Danish Maritime Authority

Several years ago, the 1971 Fund was replaced by the two subsequent Funds that pay higher compensations to the victims of oil pollution.

It was an international innovation when a global, solidary scheme on compensation for the victims of oil pollution caused by tankers was established with the 1971 Fund. It has proven to be such a great success that the system has been improved twice, and the model has been copied for other types of pollution from ships.

The 1971 Fund has been replaced by the 1992 Fund and the Supplementary Fund, allowing for greater compensation amounts and considering all new pollution incidents. Denmark was one of the first countries to accede to the higher compensation limits and, therefore, leaving the 1971 Fund 15 years ago.

Most countries agreed that now it was about time to wound up the 1971 Fund. Many of the original founders of the Fund, including the largest contributors, had also left the Fund. A few business affairs still need to be finalized. These cases have typically not been finalized because of disagreement between the Fund and the victims about the claims forwarded. Therefore, a winding up cannot be made without any legal and practical challenges. Efforts are being made to solve these before the IOPC General Assembly to be held in October 2014, when the final decision on the winding up is expected to be made.

At the meeting, the current compensation cases were also discussed. There was special interest in a judgment from the Venezuelan high court that the shipowner in a specific case (Nissos Amorgos) cannot limit his liability. The member States (except Venezuela) agreed that the decision was not in accordance with the international IOPC regulations. The consequence is that the shipowner's P&I insurance company must wrongfully pay the Venezuelan state $60 million as compensation for a claim that the Fund has already rejected to pay. At the meeting, it was debated whether the IOPC Fund is obliged to compensate the insurance company for this amount on the basis of the practice established between the Fund and the P&I insurance companies on the payment of compensation. A majority were of the view that this is not the case since the judgment is solely addressed to the P&I insurance company and not to the IOPC. Consequently, it was decided not to compensate the P&I insurance company. A few member States, including Denmark, found that the issue should be analyzed in more detail before making a decision. The P&I clubs, which disagreed strongly with the decision, will consider the situation.

A special consultative group chaired by Denmark met in connection with the IOPC meeting to consider more principle issues related to which types of ships are covered by the IOPC Fund system and how the victims of pollution can thus be covered for any oil damages suffered. The deliberations of the consultative group are to assist the working group established by the IOPC to solve the problem.

The next IOPC Fund meeting is to be held in May 2014.

dma.dk
 

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

Tanker Trends

Iraqi Kurdistan Oil Shipments Reach 8.8m Barrels

Iraqi Kurdistan has shipped 8.8 million barrels of oil from the Turkish port of Ceyhan since May, Turkish Energy Minister Taner Yildiz said, as the autonomous region

Stena, Sonangol Launch Training Facility in Angola

The Centro De Formação Maritima De Angola (CFMA) was officially launched on August 27 by top management from Sonangol, the Angolan public sector energy company and the Stena Group of Sweden.

Iraq to Appeal US Court Decision on Kurdish Oil

The Iraqi oil ministry said on Thursday it would challenge a U.S. court decision that stopped U.S. Marshals from seizing some one million barrels of disputed Kurdish oil docked near Texas.

Finance

Bollore First Half Boosted by Transport, Advertising Unit

French industrial group Bollore said first-half operating income rose 11 percent to 314 million euro because of strength at its transport business and advertising agency Havas,

CMA CGM Continues Expansion, Confirms Profits

The Board of Directors of CMA CGM Group, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer,

Odfjell Drilling in Tighter 2Q North Sea Market

Odfjell Drilling reports second quarter 2014 financial results showing a profit of US$29-million. Profit & loss Q2 2014 Operating revenue for Q2 2014 was USD 272 million (USD 289 million),

Environmental

BMT WBM to Showcase TUFLOW at World Bank Seminar

BMT WBM ( (BMT), a subsidiary of BMT Group Ltd, a leading international engineering and risk management consultancy, is delighted to announce that it will be presenting

Long Beach Cargo Operations Resume

Repair work begins after storm surges subsides The Port of Long Beach resumed full cargo-handling operations Thursday, Aug. 28, after a lessening of storm surges

Restoring the NY-NJ Harbor Estuary

Significant challenges often require a team effort. Restoring the New York-New Jersey Harbor Estuary is one of them. A group of professionals from the Army Corps of Engineers,

News

Dool to Serve as Chair of SLSMC Board

The St. Lawrence Seaway Management Corporation (SLSMC) announced that Tim Dool has been named as Chair of the Board of Directors, effective September 1. Dool was

Bollore First Half Boosted by Transport, Advertising Unit

French industrial group Bollore said first-half operating income rose 11 percent to 314 million euro because of strength at its transport business and advertising agency Havas,

East and South China Sea Disputes Need Creative Diplomacy

China and the United States appear headed for a damaging confrontation over the extent of China's territorial claims in the South and East China Seas. Now that

Offshore Energy

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Odfjell Drilling in Tighter 2Q North Sea Market

Odfjell Drilling reports second quarter 2014 financial results showing a profit of US$29-million. Profit & loss Q2 2014 Operating revenue for Q2 2014 was USD 272 million (USD 289 million),

Rosneft Restores Meteorological Observations System in Kara Sea

As part of a large-scale summer Arctic research expedition "Kara-Summer - 2014" a meteorological station was installed that meets the latest modern requirements for such equipment,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction 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: 0.1601 sec (6 req/sec)