TEHRAN: Iranian tanker owners are again cautioned about not to carry on suspected sanction busting activities involving Iranian crude oil exports.
The West of England Club said it has been made aware of 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 Khor Fakkan 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,” the club said in an alert to members.
However, the club warned that any such documentation should “not be taken at face value.”
“There is evidence of a sophisticated smuggling operation and those responsible may go to considerable lengths to disguise the true origin of the cargo,” the West of England said.
“Cargo documentation is likely to appear credible and there may be no evidence of any designated parties being involved.
“Members are therefore advised to exercise extreme caution when engaging in STS operations in the Arabian Gulf.
”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,” it said.
The club warned that it cannot provide insurance to vessels which load Iranian cargo in such circumstances and cover will cease in its entirety if such cargo is loaded.
“Members should also be aware that the 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,” it added.
In particular, the club recommends that embers check with port agents to ensure that vessels providing cargo by means of an STS transfer in the region loaded the cargo at the port stated in the cargo documentation before any cargo is received.
“It is also advisable to ensure that charter parties contain an appropriate sanctions clause,” it added.
Late last year Nobu Su-led TMT was accused by the US of violating sanctions imposed on Iran in one of the most high profile cases to date.
The US Treasury Department alleged that TMT’s former 320,000-dwt B Whale (built 2010) violated Iranian Transactions and Sanctions Regulations during an STS transfer in September 2013.
The ship is said to have received over 2m barrels of “condensate crude oil” from National Iranian Tanker Co (NITC)’s 299,000-dwt Nainital (built 1996).
However, TMT denied that the ship was loading Iranian crude. Instead, the vessel was said to be “in international waters taking condensates from Sharjah.” The US agency can impose civil penalties of $250,000 at a minimum or twice the amount of the suspect transaction, if that is higher. However, the agency ruled out issuing monetary penalties against TMT, leaving the letter as the only punishment.
