Some ship owners have started charging extra fees for ships loading crude oil out of Nigeria because of the requirement by the Nigerian National Petroleum Corporation (NNPC) for them to sign a letter guaranteeing their ships would not be used for illegal activities, shipping sources have said.
The NNPC had in September lifted a ban it placed on 113 oil vessels with a caveat that the ship owners must sign a “letter of comfort”.
Some ship owners have started charging extra fees for ships loading crude oil out of Nigeria because of the requirement by the Nigerian National Petroleum Corporation (NNPC) for them to sign a letter guaranteeing their ships would not be used for illegal activities, shipping sources have said.
The NNPC had in September lifted a ban it placed on 113 oil vessels with a caveat that the ship owners must sign a “letter of comfort”.
The request for the letter by NNPC has reportedly caused uncertainty and raised concerns among shipowners and charterers, a situation that has complicated operations for Nigerian crude oil buyers.
Although loading of Nigerian crude is said to be ongoing as normal, it has emerged that two shipowners have started charging a premium of up to Worldscale 10 for ships loading from Nigeria because of the requirement, shipping sources told Platts, a US-based energy publication.
Specifically, the SCF Altai, owned by Sovcomflot, and Delta Kanaris, a Suezmax chartered by PetróleoBrasileiro S.A. (Petrobras) and owned by Delta Tankers Ltd (Delta Tankers), are reported to have been charging a premium of up to Worldscale 10 for loading in Nigeria.
Sovcomflot was said to have declined to comment on its specific obligations under the letter of comfort, but said the matter was still under discussion and may not be precedent setting.
The letter doesn't seem to be asking more than the Nigerian law requests, which shipowners have to abide by when they go to Nigeria
The letter requires shipowners to take on responsibility outside of their control, and as such one shipowner expressed little surprise that signing it would therefore attract a rate premium.
"Generally, there is still no straight answer for ships loading from Nigeria," they said.
"It varies from one shipping company to another whether he wishes to sign it or not…However, if a shipowner is signing the NNPC's LOC (letter of comfort), he is liable for many risks and therefore he will charge a premium."
However different sources have indicated that "the letter doesn't seem to be asking more than the Nigerian law requests, which shipowners have to abide by when they go to Nigeria."
A separate source commented that the premium was not widespread, "but some owners are using the issue to make gains."
In September, despite reports that Nigeria had lifted a ban on around 100 tankers from operating in its territorial waters, the International Association of Independent Tanker Owners (INTERTANKO) recommended caution for any tanker owners and operators intending to proceed with trade to the country.
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