Singapore to Accede To the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (Bunker Convention)

30 March 2006

Singapore has arranged to deposit an instrument of accession to the International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunker Convention), 2001 at the International Maritime Organisation (IMO) in London on 31 March 2006.

At the opening ceremony of INTERTANKO's Tanker Event today, Mr Yeo Cheow Tong, Minister for Transport said that Singapore was ready to accede to the Convention.

The Bunker Convention was adopted by the IMO in 2001 to ensure that adequate, prompt and effective compensation is available to persons who suffer damage caused by bunker oil pollution from ships other than oil tankers. This includes container and passenger ships and bulk carriers, among others; given that some of these vessels usually carry much larger quantities of bunker oil than oil carried as cargo in small tankers. The Convention applies to damage caused on the territory, including the territorial sea, and in the exclusive economic zones of State Parties.

The Convention will enter into force 12 months following the date on which 18 States, including five States each with total gross tonnage (GT) not less than 1 million GT, have accepted it. Presently, nine States, namely, Cyprus, Greece, Jamaica, Latvia, Luxembourg, Samoa, Slovenia, Spain and Tonga, with 9.07 per cent of world tonnage have accepted the Convention. Of these nine States, only Cyprus, Greece and Spain have fleets of more than 1 million GT as at 31 Dec 04. Singapore will be the 4th country with a fleet of more than 1 million GT to accede. The 33 million GT on the Singapore ship register contribute about four per cent to the world tonnage.

The Convention is modelled on the International Convention on Civil Liability for Oil Pollution Damage, 1992 (CLC 92), which Singapore is a party to. As with CLC 92, a key requirement in the Bunker Convention is the need for the registered owner of a vessel over 1,000 GT to maintain compulsory insurance to cover liability for pollution damage, with liability limits pegged to the Convention on Limitation of Liability for Maritime Claims, 1976 (LLMC 76). Under the Bunker Convention, victims of oil pollution in a State Party to this Convention will be able to claim compensation directly from the ship's insurer even if the owner of the ship is unable or unwilling to pay for the compensation.

This is the first time an international regime to cover pollution damage arising from bunker oil pollution from non-tankers has been adopted. Singapore's accession to the Bunker Convention will enable it to bridge the gap in current international civil liability and compensation regime, with guaranteed compensation for pollution damage arising from bunker oil spill from non-tankers. Presently, such compensation is claimed under Third Party Liability Insurance, which can be difficult should the owner of the ship become bankrupt or is unable to pay. The new regime is therefore pertinent given that it is more costly to clean up a bunker oil spill, especially those of higher density and viscosity, compared with a crude oil spill.

Singapore's accession to the Bunker Convention before the Convention has even entered into force demonstrates its continued global commitment to safeguard the marine environment and promote clean seas, and support of the work of the IMO.

End of Release.