London: The P&I Club, West of England, has warned about attempts in recent months to export crude oil originating from Iran in breach of applicable sanctions by means of ship to ship (STS) transfers at Khorfakkan in the UAE.
It appears that such oil may routinely be described as being of Iraqi origin and as having been loaded on board the transferring vessel at Basra some time before the proposed STS operation. However, any such documentation should not be taken at face value, the insurance firm warned.
On recent occasions the supplying vessels loaded the cargo in Iran before shuttling across the Straits of Hormuz to supply vessels with oil – ostensibly from Iraq – destined for countries that do not benefit from a waiver under applicable US sanctions legislation.
“The Club cannot provide insurance to vessels which load Iranian cargo in such circumstances and cover will cease in its entirety if such cargo is loaded,” West of England warned. Transport of Iranian oil to states which do not benefit from a waiver under US law may trigger enforcement action against the vessel, its owners and related parties by the US authorities, the company added.
There is evidence of a sophisticated smuggling operation and those responsible may go to considerable lengths to disguise the true origin of the cargo. Cargo documentation is likely to appear credible and there may be no evidence of any designated parties being involved. Shipowners are advised to exercise extreme caution when engaging in STS operations in the Arabian Gulf. [14/01/15]
