Straits Times 19 Aug 09;
KUALA LUMPUR - A TANKER carrying 58,000 tonnes of naphtha was involved in a collision with a cargo ship late on Tuesday in the Strait of Malacca, leaving nine crewmen from the oil vessel missing, a Malaysian maritime official said.
Oil traders said on Wednesday the Cargill-chartered tanker, Formosaproduct Brick, was shipping the naphtha cargo from the United Arab Emirates to Daesan and Yosu in South Korea.
The origin of the naphtha was likely from Abu Dhabi National Oil Co (ADNOC), with whom US trading firm Cargill has a term contract to lift around 100,000 tonnes for an unspecified period, traders added.
The official from the Malaysian Maritime Enforcement Agency (MMEA) said there was no danger of oil spill from the Liberian- registered tanker with 25 crew, which was on fire hours after the collision with the Ostende Max, a British-registered bulk carrier.
But shipping in the busy waterway was not disrupted, he added.
However, a Reuters cameraman near the scene said the fire appeared to have been put out and the tanker did not seem to be listing or at risk of sinking.
Traders said the naphtha was slated to be supplied to South Korean end users - Honam Petrochemical, LG Chem and Yeochun Naphtha Cracking Centre (YNCC).
'The barrels were meant to arrive in South Korea in second-half August, but I doubt there will be any major impact.
Inventory is not that low (in South Korea),' said a Northeast Asian trader. 'Additionally, there are still some September cargoes that traders had not sold.' Most petrochemical feedstock buyers have completed their September purchases, and are looking to replenish first-half October stocks.
'As far as we know, Cargill has not indicated what they will do next,' another trader said.
Asian naphtha supplies were tight after Europe choked off exports on refinery run cuts, and strong demand for the light fuels for petrochemical and gasoline production.
Cracks spreads - premiums or losses from refining Brent crude into naphtha - hit a near six-month high last week at US$114.85 (S$165) a tonne. But unexpected spot exports from Saudi Arabia and China helped to plug most of the void left by Europe, sending the cracks down to US$97.73 a tonne on Tuesday. -- REUTERS
Tanker Catches Fire After Colliding With Bulk Carrier Off Port Dickson
Bernama 18 Aug 09;
SEREMBAN, Aug 18 (Bernama) -- A tanker caught fire after colliding with a bulk carrier in the Melaka Strait, about 20 nautical miles off Port Dickson near here Tuesday night.
The flames could be seen from the beaches in Port Dickon and the heat from them prevented rescuers from approaching the vessel.
Port Dickson police chief Supt Mazlan Othman said the tanker was from Liberia and the bulk carrier from Britain and that each had a crew of 25.
"The crew from the tanker are safe and are on their way to shore while no one on the bulk carrier was injured," he told reporters at the Port Dickson jetty.
He added that the bulk carrier was reported to have sustained only slight damage and had continued with its journey to Singapore.
Mazlan said the tanker was still in flames and was waiting for fire-fighting boats from Port Klang to arrive.
He said the Fire and Rescue Department was notified at 9.15pm and it is believed a major oil spill had occurred.
He said police had relayed the information to the Department of Civil Aviation to warn of heavy smoke which might affect flights going to and coming from the KL International Airport.
The jetty has become a hive of activity with hordes of journalists as well as boats from the Marine Department, the police's Marine Operations Force, Fire and Rescue Department and the Malaysian Maritime Enforcement Agency, which are participating in rescue and spillage containment efforts.
-- BERNAMA
Tanker Collision: Maritime Agency Activates Rescue Ops Centre
Bernama 19 Aug 09;
KUALA LUMPUR, Aug 19 (Bernama) -- The Malaysian Maritime Enforcement Agency (MMEA) has activated its search and rescue operation centre following the oil tanker-bulk carrier collision in the Strait of Melaka, off Port Dickson, last night.
MMEA public relations officer Faridah Shuib said the agency deployed its assets from Linggi, Port Klang and the Subang Air Base late last night to help put out the fire onboard the fuel tanker, MT Formosa Product Brick, and to rescue the crewmen.
"Initial reports showed that the MT Formosa Product Brick, laden with 58,000 tonnes of naftar oil (a component of crude oil) was on its way from the United Kingdom to Singapore and collided with the bulk carrier MV Ostende Max which was coming out of Port Dickson Port heading for Singapore," she said in a statement.
Faridah said the MMEA's assets involved were four speed boats and two N3 Dauphin helicopters.
The agency also coordinated assets from other agencies such as the Marine Operations Force, an aircraft from the police air wing and two more from the Port Klang Marine Department.
She said that the Malaysian navy deployed KD Jerai and KD Laksamana Hang Nadim from Lumut to assist in the operation.
A tugboat, Sam Son Mariner, is assisting the Fire and Rescue Department to put out the fire on the tanker.
"A merchant ship, Nordspring which was passing by the area had also assisted in the rescue operation," she said.
Sixteen crew members were rescued at about 3am today while nine others are still missing in the 9pm incident.
Meanwhile in PORT DICKSON, MMEA's search and rescue operation director First Maritime Admiral Tan Kok Kwee said the operation covered an area approximately 50 sq km.
Speaking to reporters here, he said, the operation, which was called off at about 4.30am, resumed at 7am today.
The MV Ostende Max, which was only slightly damaged in the incident, is now in Port Dickson for investigations.
"We are now towing the MT Formosa Product Brick which is adrift 18km from its original location and is now in Sepang waters. So far, there is no oil spill detected," he said.
Negeri Sembilan police chief Datuk Osman Salleh said police would take statements from both captains to facilitate investigations.
-- BERNAMA
Naphtha tanker burns, leaks fuel off Malaysia
Reuters 19 Aug 09;
KUALA LUMPUR (Reuters) - A tanker carrying 58,000 tons of naphtha was still burning on Wednesday, nearly 24 hours after a collision with a cargo ship in the Strait of Malacca, and had started to leak fuel, Malaysian officials said.
Officials feared the possibility of a spill of naphtha, saying firemen were cooling the ship's storage tank to prevent an explosion.
The search continued for nine of the tanker's 25-member crew. The others have been rescued.
Oil traders said the Cargill-chartered tanker, Formosaproduct Brick, was shipping the cargo of naphtha, a petrochemical feedstock, from the United Arab Emirates to Daesan and Yosu in South Korea.
The origin of the naphtha was probably the Abu Dhabi National Oil Co (ADNOC), with which U.S. trader Cargill has a term contract to lift around 100,000 tons for an unspecified period, traders added.
The police chief of Port Dickson in central Malaysia told Reuters that the Liberian-registered ship was listing but there was no immediate danger that it would sink.
"Our biggest concern now is the possibility that the cargo could spill," said Mazlan Othman.
A spokeswoman from the Malaysia Maritime Enforcement Agency (MMEA) said the vessel was drifting and still ablaze, nearly 24 hours after the collision with the Ostede Max, a British- registered bulk carrier.
"The shipping lanes are not affected now because we pulled the tanker away," she told Reuters. "There is still no word about the nine crew members."
CARGO BOUND FOR S.KOREA
Traders said the naphtha was destined to be supplied to South Korean end users -- Honam Petrochemical, LG Chem and Yeochun Naphtha Cracking Center (YNCC).
"The barrels were meant to arrive in South Korea in second-half August, but I doubt there will be any major impact. Inventory is not that low (in South Korea)," said a Northeast Asian trader. "Additionally, there are still some September cargoes that traders had not sold."
Market sentiment was edgy following the collision, sending crack spreads -- premiums or losses from refining Brent crude oil into naphtha -- up by $10.67 to $108.40 a barrel on Wednesday.
But this was still lower than August 11, when cracks hit a near six-month high at $114.85 a metric ton, as unexpected spot exports from Saudi Arabia and China helped to plug most of the void left by a fall exports from Europe.
Asian naphtha supplies were tight after Europe choked off exports due to refinery run cuts and strong demand for the light fuels for petrochemical and gasoline production.
Most petrochemical feedstock buyers have completed their September purchases, and are looking to replenish first-half October stocks.
"As far as we know, Cargill has not indicated what they will do next," another trader said.
The collision occurred at 10:00 p.m. (1400 GMT) in international waters in the Malacca Straits bordering Malaysia and Indonesia, another MMEA official said, adding that the tanker was towed 33 km offshore from Port Dickson.
The MMEA spokeswoman earlier said the cargo ship was empty when it sailed from Port Dickson for Singapore at the time of the collision and the slightly damaged bulk carrier had been directed to return to the west coast Malaysian port for investigations.
(Reporting by Razak Ahmad, Yoong Chee Weng and Niluksi Koswanage; Additional reporting by Seng Li Peng and Yaw Yan Chong in Singapore; Editing by Anthony Barker)
Tanker ablaze off Port Dickson
Straits Times 20 Aug 09;
KUALA LUMPUR: A Taiwanese oil tanker carrying 58,000 tonnes of naphtha fuel was ablaze yesterday after it collided with another ship in the Strait of Malacca the night before.
Nine Chinese crew members were missing after the tanker collided with a Greek-managed bulk carrier vessel, the Ostede Max.
'The MT Formosa Product Brick is on fire and is now listing on its left side. We fear it may sink,' local marine police chief Rizal Ramli told news agency Agence France-Presse.
'The collision happened last night in clear weather off Port Dickson. We have rescued 16 crew members, mainly of Chinese nationality,' he said.
He added that two of the rescued crew were Taiwanese, and a search was being conducted for the remaining nine of the 25-man crew.
The oil tanker was heading for South Korea via Singapore when the collision occurred.
Some oil was spilt, and dozens of maritime officials in 11 boats and two helicopters were involved in battling the blaze, according to Negeri Sembilan police chief Osman Saleh.
Stricken Oil-Product Tanker Towed to Malaysian Port (Update2)
Yee Kai Pin, Bloomberg 19 Aug 09;
Aug. 19 (Bloomberg) -- An oil-product tanker that caught fire after colliding with a bulk carrier in the Straits of Malacca is being towed to Port Dickson, Malaysia, Bernama reported.
The Formosaproduct Brick, a 70,000-deadweight ton Liberian- flagged vessel, is carrying naphtha, a light oil product usually used as petrochemical feedstock, according to Bruce Blakeman, a spokesman in Singapore for charterer Cargill Inc. The company can’t immediately confirm who owns the cargo.
Sixteen crew members were rescued by a passing container ship after the collision late yesterday, while nine others are missing, Bernama said, citing police spokesman Mazlan Othman. The incident occurred about 20 nautical miles off Port Dickson, and no oil leaks have been sighted, the Malaysian national news agency reported.
The Malacca Strait is the shortest sea route between the Persian Gulf and Asia, with more than 50,000 vessels passing through every year, according to the U.S. Energy Department. It’s 1.7 miles (2.7 kilometers) wide at its narrowest point, “creating a natural bottleneck, as well as potential for collisions, grounding, or oil spills,” the department’s Web site said.
Ship Ablaze
The ship was listing to port and was ablaze near the stern, in front of the bridge, based on an Associated Press picture published earlier today by the British Broadcasting Corp.
Cargill is seeking to establish the identity of the owners of the naphtha, Blakeman said.
“The cargo on the boat -- that’s a very complex question - - it moves through different stages at different points through the shipping” journey, he said. “The destination was South Korea and it was going to totally discharge at South Korea.”
South Korean petrochemical makers Honam Petrochemical Corp. and LG Chem Ltd. each were to receive 25,000 metric tons of naphtha from that tanker and Yeochun NCC Co. Ltd. the remaining 8,000 tons, two traders familiar with the transaction said. Calls to Honam Petrochemical, LG Chem and Yeochun NCC outside of office hours weren’t answered.
The tanker, built in 2005, is registered by a company known as Formosa Brick Marine Corp., according to data compiled by Bloomberg. It has a double hull, a design meant to prevent oil leaks or flooding beyond the outer compartment.
The rescued crew members including the captain were picked up and taken to Port Dickson at 3:30 a.m. local time today, and a search for nine others resumed at 7 a.m., according to the Bernama report.
Both vessels were heading to Singapore at the time and the bulk carrier, Ostende Max, has docked at Port Dickson for investigations, Bernama said.
Fire on naphtha tanker put out
Business Times 21 Aug 09;
(KUALA LUMPUR) Malaysian authorities have put out most of the fires on a tanker carrying 58,000 tonnes of naphtha after it was involved in a collision with a cargo vessel in the Strait of Malacca, a Malaysian official said yesterday.
A Malaysian Maritime Enforcement Agency (MMEA) official said that there were still no signs of a spill of naphtha, and that search efforts were continuing for nine of the tanker's 25-member crew.
The rest were rescued by a passing vessel soon after the collision on Tuesday.
'Reports from firefighters on site as of 5.30am (2130 GMT) said most of the fires are out, so the focus now is ensuring the cargo doesn't leak,' the official told Reuters.
The official added that the ship, though listing, was not in any immediate danger of sinking.
Oil traders said that the Cargill-chartered tanker, Formosaproduct Brick, was shipping the cargo of naphtha, a petrochemical feedstock, from the United Arab Emirates to Daesan and Yosu in South Korea.
The origin of the naphtha was probably the Abu Dhabi National Oil Co (ADNOC), with which US trader Cargill has a term contract to lift around 100,000 tonnes for an unspecified period, traders added.
The official said that a report from the tanker's captain, who was among the 16 rescued crewmen, noted the possibility that the nine missing crew did not manage to abandon ship after the collision with the Ostende Max, a British-registered bulk carrier.
Faridah Shuib, a spokeswoman for the Malaysian Maritime Enforcement Agency, said that the thick smoke may have prevented the crew from leaving the the stricken ship.
The maritime agency on Wednesday deployed seven boats to the scene, off the west coast of Peninsular Malaysia, to help with the rescue after the collision two days ago. The ship can't be towed to port because of the risk to other vessels, according to Ms Faridah.
The last person to leave the vessel couldn't see anyone on board or leaping from the decks, she said.
The ship, delivered to its owner in 2005, has a double hull designed to prevent leaks or flooding beyond the outer compartment, according to data compiled by Bloomberg.
The Straits of Malacca is part of the shortest sea route between the Persian Gulf and Asia, with more than 50,000 vessels passing through every year, according to the US Energy Department. It's 2.7km wide at its narrowest point, creating a natural bottleneck, as well as potential for collisions, grounding, or oil spills.
South Korean petrochemical makers Honam Petrochemical Corp and LG Chem Ltd were to receive 25,000 tonnes of naphtha each from the tanker and Yeochun NCC Co Ltd the remaining 8,000 tonnes, two traders familiar with the transaction said\. \-- Reuters, Bloomberg
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