EU Considers Allowing Insurance for Tankers Sailing to Iran

Wednesday, March 14, 2012

The European Union may allow insurance against risks, such as collisions and spills, for tankers carrying Iranian oil, a proposal which would ease curbs on Iran’s crude exports.
The EU would prohibit the insurance and re-insurance of Iranian oil “except for third-party liability insurance and environmental liability insurance,” according to a draft document obtained by Bloomberg News. The bloc aims to complete the regulation, which is being considered by national governments, within a month, according to an EU official with knowledge of the matter.
Brent oil has risen 14 percent since an EU embargo was announced January 23 to pressure Iran over its nuclear program. As originally agreed, the ban would affect insurance for 95 percent of the world’s tankers covered by the London-based International Group of P&I Clubs, according to insurers and ship owners. The International Energy Agency said today that Iranian exports would slump 50 percent by mid-year, when the EU embargo is due to take full effect.
“This is a first sign that the EU and U.S. realize that they have overshot a bit on the sanctions against Iran, and that internal pressure is increasing on the question of oil prices spinning out of control,” said Olivier Jakob, managing director at Petromatrix GmbH, a researcher in Zug, Switzerland. “It is likely to have an impact on prices at some stage.”
Brent oil for April settlement fell 14 cents, to $126.08, at 5:13 p.m. on the London-based ICE Futures Europe exchange.
An exception proposed in the draft document would allow tankers owned outside the EU to continue carrying Iranian oil, even if they are insured in Europe, according to Andrew Bardot, the International Group’s secretary and executive officer.
“Liability insurance is the big issue because the level of exposure is much higher,” he said in a phone interview from London. “The draft would mean non-European tanker operators can lawfully carry cargoes outside Europe to non-European destinations.”
The International Group has pressed the European Commission and member states about making an exception for insurance against pollution and crashes, Bardot said. The group’s 13 members are subject to EU rules to access the reinsurance pool, according to Bardot.
Frontline Ltd., Overseas Shipholding Group Inc. and owners of at least 100 supertankers said last month they would no longer call at Iranian ports because of the insurance ban.
Iran’s oil output dropped last month, to 3.45 million barrels a day, the lowest level since September, 2002, according to data compiled by Bloomberg. Exports slid to 1.8 million barrels a day, from 2.3 million at the end of last year, according to Citigroup Inc. They may decline as much as 1 million barrels a day after July, the IEA said today.
Oil sales earned the Persian Gulf country, the Organization for Petroleum Exporting Countries’ second-largest producer, $73 billion in 2010, accounting for about 50 percent of government revenue, according to the U.S. Department of Energy. (Bloomberg)

 

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

Tanker Trends

Maersk to Install Transas ECDIS on 100 Vessels

Maersk Line, the world's largest container company, has selected Transas Marine for ECDIS implementation on more than 100 vessels, Transas announced today. The

Rotterdam Gate LNG Terminal Expansion Started

Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun.

ECDIS to be Installed on 100 plus Maersk Vessels

Maersk Line selected Transas Marine for  ECDIS implementation on  more than 100 vessels.   The contract features Transas state-of-the-art Navi-Sailor ECDIS 4000

Energy

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

U.S. Oil Train Traffic mostly from Midwest to East Coast

U.S. oil trains delivered more than 13.5 million barrels of crude oil from the Midwest to the East Coast in January, according to government data that gives a first

Rotterdam Gate LNG Terminal Expansion Started

Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun.

News

WOW at USMMA

The United States Merchant Marine Academy Hosts 7th Annual Women on the Water Conference. Last week, The United States Merchant Marine Academy (USMMA) in conjunction with the U.

Methanol Powered Ferry Launched in Baltic Sea

Swedish ferry operator Stena Line has announced that it has converted the Stena Germanica to run on methanol, an industry first.   The company spent $24 million on converting the ship to methanol.

U.S. Oil Train Traffic mostly from Midwest to East Coast

U.S. oil trains delivered more than 13.5 million barrels of crude oil from the Midwest to the East Coast in January, according to government data that gives a first

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1555 sec (6 req/sec)