Oil to Be Transferred from Fire-hit Tanker in Singapore

Ship owner Hafnia, operator of the Hafnia Nile oil tanker, is in discussion with Singapore's Maritime and Port Authority (MPA) about transferring the damaged ship's cargo of naphtha to a safe location, the MPA said on Wednesday.

The Singapore-flagged Hafnia Nile and the Sao Tome and Principe-flagged Ceres I collided and caught fire about 55 km (35 miles) northeast of the Singaporean island of Pedra Branca early on July 19.

The Hafnia Nile, a Panamax tanker chartered by Spanish energy firm Cepsa, was carrying about 300,000 barrels of naphtha which had been purchased by Japanese refiner Eneos. Naphtha is a raw material for making petrochemicals.

Hafnia said on Wednesday that experts are conducting inspections of the damaged areas of the tanker which remains connected to tugs in Malaysian waters.

An initial assessment by the team of specialists showed the Hafnia Nile's engine room had suffered damage from the fire, Hafnia said in a statement.

"Further inspections have confirmed a light oil sheen which is seen emanating from the damaged area," it added.

"A salvage team that has boarded the vessel has meanwhile transferred equipment from one of the attending tugs on site to contain and stop any localised seepage."

Hafnia said it is in discussion with the Malaysia Marine Department (MMD) and Singapore's MPA to develop a towage plan for the vessel and assess a location for cargo transfer and repairs.

MPA said Hafnia, will also arrange for clean-up for the tanker which is currently located about 100 kilometres from Singapore.

Singaporean and Malaysian authorities are still investigating the collision.

(Reuters - Reporting by Jeslyn Lerh; Additional reporting by Rozanna Latiff; Writing by Florence Tan; editing by Jason Neely)