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04 Sep 2020 | 07:40 UTC — Singapore
Singapore — The fully laden Indian Oil Corp., or IOC, chartered super tanker is still on fire, and eight ships and tugs are trying to salvage the cargo and prevent an oil spill, a Sri Lankan navy spokesperson said Sept. 3.
"The main focus at present is to stop the fire, prevent it from spreading to the cargo and so far we have been successful," the spokesperson told S&P Global Platts over the phone.
The New Diamond -- a 20-year old VLCC controlled by New Shipping -- was carrying around 260,000 mt of Kuwaiti crude from Mina al Ahmadi to Paradip when it caught fire in the engine room Sept. 2, close to 38 nautical miles off Sri Lanka's coast.
There has been no spillage from the cargo or from the bunker tanks so far, the spokesperson said.
Three ships belonging to the Sri Lankan navy, a ship each from the Indian navy and coast guard, two tugs from Hambantota port and another arranged by New Shipping, are currently working to douse the blaze, he said.
The ship had about 22 crew members, and all except one were safely evacuated, he added. The ship's captain is now in one of the ships belonging to the Indian navy, the spokesperson added.
Firefighting is in progress in consultation with the master of the New Diamond, Indian Coast Guard said in a comment on Twitter.
There is a crack of about 2 m at the rear of the VLCC's port side 10 m above the waterline, sources said. They said the tragedy has once again brought to fore the maritime debate over chartering ships that lack full sire or regulatory approvals. Globally, 15 years for super tankers is a critical threshold after which such approvals lapse.
Many oil companies across the globe do not charter tankers that are more than 15 years old as they lack full regulatory approvals and are unable to clear vetting at several load and discharge ports. However, several refiners do not hesitate to take such ships if they are able to get port clearances, as they are available at a discount over the prevailing freight.
Both cargo prices and freight are subdued at present due to demand destruction caused by the coronavirus pandemic, significantly reducing the freight discount these no sire tankers enjoy over approved ships.
IOC and New Shipping executives could not be immediately reached for comment.