NEWSLETTER No.

2 /15
Nigeria Blacklisting of Crude Oil Tankers
29th July 2015

On 15th July 2015 the Nigerian National Petroleum Corporation (NNPC) issued a list of 113 tankers
banned, with immediate effect, from engaging in crude oil / gas loading activities in any terminal within
Nigerian territorial waters The directive also affects the movement of the banned vessels within
Nigerian territorial waters. For ease of reference we attach a copy of the issued directive which NNPC
sent to the terminal operators setting out the Nigerian ports involved and the list of currently affected
crude oil vessels.
Whilst the reasons for the prohibitions are not explained in the directive, speculation suggests that earlier
this year the Nigerian Authorities introduced a requirement that all tankers loading crude from Nigerian
terminals were to complete an out-turn verification exercise (OVE) at the discharge port. It is thought that
the recent directive is linked to this initiative, even if it is not clear which rules or regulations may have
been allegedly breached by the affected Owners. The international shipping association, Intertanko, is
reported to have made contact with NNPC to voice objections to the ban.
It is believed that the list may not be final and more vessels could be added. Indeed the list appears to
comprise principally of voyages performed in the months of June and July to Far East destinations. It is
therefore possible that further revisions/additions of vessels to this list will be made as the Authorities
continue their investigations. Furthermore it is noted that a degree of confusion surrounds the list issued
since vessel names, IMO numbers and mentioned ownership appear in some instances to be
inaccurate. Industry commentary also suggests that some listed vessels may not have actually called in
Nigerian ports recently or at all. It is however clear that affected Owners run the risk of seeing their
tankers detained by the Nigerian Authorities if they continue trade in Nigerian waters whilst still
appearing on the blacklist.

There are a number of commercial and legal issues that should be considered when contemplating
trading to Nigeria to load cargo. We are grateful to Tatham Macinnes LLP who have allowed us to
circulate their recent article which examines in further detail some important aspects to be considered
following this new directive. The issues considered include;
-

Owners remedies and hire under time charterparties;

Delay claims;
Legitimacy of voyage instructions;
Owners trading warranty;
Responsibility as between Owners and Charterers for providing official outturn figures.

Given the common exclusions that exist in insurance policies relating to operating in breach of lawful
trading, cover for losses arising from a vessel being detained pursuant to the NNPCs directive is likely
to be subject of debate on a case by case basis.
We would suggest that due care and attention is taken in view of the foregoing and we would
recommend that Owners and Charterers review charterparty arrangements for trading to Nigeria. Please
contact us if assistance in seeking guidance from your P&I Club is required in this regard.

This Newsletter, and our information archive, can also be accessed at www.plferrari.com

P. L. Ferrari & CO. S.r.l.

GENOA

MONACO

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This newsletter is intended solely as an overview of the Marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of
printing and we cannot be held liable for the omission or inaccuracy of any information within the newsletter.