OCIMF suspends Lukoil's participation in the SIRE program

The Oil Companies International Marine Forum, or OCIMF, suspended Lukoil Oil Company's participation in the Ship Inspection Report, or SIRE, program following the application of international sanctions against certain Russian individuals and companies since Russia's invasion of Ukraine in February, OCIMF announced in a notice to shipbrokers March 18.

"Vessel Inspections will no longer able to be commissioned or submitted into the SIRE Programme by Lukoil," the note said. "The sanctions situation and the suspension of Lukoil Oil's programmes participation will be kept under regular monthly review by the OCIMF Legal Committee."

OCIMF provides inspection programs used by ship owners, operators, managers and charterers worldwide to enhance the safety of their operations, including the SIRE program. With OCIMF no longer accepting or validating the SIREs provided by Lukoil-linked inspectors, subsequent charter parties can no longer use the Lukoil-linked inspection as a basis for review, as opposed to doing their own.

Tanker market participants were at odds to determine the implications of the SIRE program suspension by OCIMF as to who would be able to continue trading Lukoil tonnage.

"It is a gray area," a shipbroker said. "It just means vessels will not be able to get a Lukoil SIRE."

While affected ships will need a valid SIRE within six months in order to be compliant, sources noted that there are oil traders working outside of SIRE inspection protocols.

The Lukoil fleet of tankers includes one Suezmax, 10 Aframaxes, five Medium Range tankers and some Handysize tankers, according to market sources. Some of the Aframaxes are on period charter from Sovcomflot and may need to be redelivered by May 15, a second shipbroker said.

The US Office of Foreign Asset Controls imposed financial restrictions on Sovcomflot, also known as the SCF Group and Russia's largest shipping company, which has a fleet of 133 ships, including 108 tankers and 14 gas carriers.