CPC seeking fuel shipment sans insurance?

Saturday, 18 May 2013 01:16 - - {{hitsCtrl.values.hits}}

The Ceylon Petroleum Corporation (CPC) is said to be trying to procure Iranian Light Crude Oil through ‘little known’ UAE companies such KASB and Mercol.

Industry sources claimed KASB was very late in delivering its oil and has desperately chartered a tanker by the name of KAMILA.

The vessel has its P&I Insurance with the West of England P&I club. The West of England P&I club cannot legally insure a vessel carrying Iranian oil, hence the vessel’s P&I cover will automatically lapse as soon as the oil comes on board.

“Therefore, the vessel will carry a million barrels of crude oil to Sri Lankan with no pollution cover. If there is an incident the Government will have to bear the costs. Technically, the vessel should not be permitted to enter a Sri Lankan port without insurance cover,” sources opined.