ICC: Beware Spurious Oil Fraud Claims

Thursday, March 27, 2014
Photo: ICC

The ICC reported that shipowners are facing new dangers from criminal gangs making spurious oil fraud claims. The “victims”/fraudsters try to extort money from owners by bringing action against them for failing to deliver cargoes of oil they allegedly own.

Such scams were previously confined to West Africa, ICC said, but now appear to have spread to other countries, as a case reported recently to the ICC International Maritime Bureau (IMB) shows.

It involves a vessel that trades regularly into the Arabian Gulf. A claim has been lodged against the shipowner to recover over $50 million, the full value of a consignment of oil. The claimant alleges that the cargo of oil it owns was loaded onto the vessel in Russia but was never delivered to the designated discharge port in the Arabian Gulf. Moreover they apparently have documents to prove this, and a local court in the region has now been persuaded to issue a warrant of arrest against the vessel named in the claim.

The case has put the shipowner in a dilemma. He is reluctant to risk taking the vessel into the jurisdiction where the warrant was issued for fear it will be arrested and he will become embroiled in litigation to get it released. At the same time, he is obliged to enter the region under the terms of the vessel’s current charter party. Defaulting on it would mean he incurs financial penalties.

Another snag in the case is that the documents presented to the court to obtain the arrest warrant appear authentic and confirm that the vessel did load the oil at the Russian port although it had not called at that load port.

IMB, which is assisting the ship owner and seen the documents, are warning other owners to be on their guard. It notes what stands out in this new variation to the West African fraud is the fact that documents produced in this case seem extremely credible, enough to convince courts of the claim.

The new case takes the problem to a new level and presents shipowners with a much bigger danger to their operations because it could seemingly be replicated anywhere around the world and particularly in states whose legal systems are less robust. It also allows the perpetrators to wait for the alleged offending vessel to arrive at the designated country before lodging a claim locally. This could mean that the vessel is trapped before it can act.

“This may be the first of many other similar claims to be lodged against shipowners around the world if organised crime is involved and it is important that information on similar scams are collated,” IMB said.

“If we can build a picture of what is happening it may be possible to identify the perpetrator or at least inform shipowners what to watch out for,” IMB added.

IMB is asking shipowners who have experience or are have suspicions of this new type of crime to contact them so that a suitable response can be coordinated. IMB offers a range of services to assist shipowners in determining the authenticity of trade documents, one of which includes detailed analysis by specialist document checkers.

icc-ccs.org


Tanker Trends

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Alfa Laval Launches DuroShell LPG/E Cargo Condenser

With the new Alfa Laval DuroShell plate-and-shell heat exchanger, Alfa Laval aims to strengthen its offering in LPG/E cargo reliquefaction with a construction that

Navy Discovers Malaysian Tanker

Indonesia's navy has found a tanker carrying almost US$400,000 worth of diesel that was taken by its own crew last week due to a commercial dispute, says a report in AFP.

Finance

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Energy

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

ABS Makes it Safer to ‘Walk to Work’

ABS announced the publication of The ABS Guide for Certification of Offshore Access Gangways. The new Guide addresses certification for safety systems used for “walk to work” (W2W) crew transfers.

Viking Grace Marks 1,000 LNG Bunkering Milestone

From the very beginning, the M/S Viking Grace – delivered in January 2013 – was an environmental milestone.   The vessel attracted global attention as an environmental

Maritime Security

White House: Iranian Ships' Actions in Gulf Increase Risk of Miscalculation

Actions by Iranian vessels in several encounters with U.S. warships in the Gulf this week are cause for concern and increase risks of miscalculation, the White House said on Friday.

Australia Warns DCNS after Security Breach

Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines,

Scorpene Submarine Data Leak: Setback to Indian Navy

India has began multiple investigations to determine the extent of damage caused by the reported massive leak of secret data detailing the combat and stealth capabilities

News

MV WERFTEN, Foreship Sign Design Agreements

MV WERFTEN signed a letter of intent with the engineering company Foreship in Stralsund today. The agreement includes parts of the basic design as well as design,

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Zumaia Offshore Acqires MPP Workboat Aitana B

In April 2016 Zumaia Offshore, S.L., leading workboat owner and operator based in the Basque Country, took delivery of the Cummins-powered MPP workboat “Aitana

Offshore Energy

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

Onshore Spending on the Cusp of Recovery?

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
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: 0.1153 sec (9 req/sec)