Singapore has become a party to the Protocol of 1992 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971 (Fund 71). The Instrument of Accession to the Protocol (Fund 92) was deposited with the International Maritime Organization (IMO), which is the depository for the Protocol, on 31 December 1997. Fund 92 will enter into force for Singapore on 31 December 1998.

Fund 92 was adopted by IMO in November 1992 and came into force internationally on 30 May 1996. It adds to the compensation for oil pollution damage available under the CLC 92 for the victims who are unable to obtain adequate compensation under the CLC 92. It raises the limit of compensation for oil pollution damage from 59.7 million special drawing right (SDR) (approximately S$130 million) to 200 million SDR (approximately S$436 million). The conversion rate of SDR into Singapore Dollars is fixed by the International Monetary Fund. CLC 92 is the 1992 Protocol to the 1969 International Convention on Civil Liability for Oil Pollution Damage (CLC 69). Singapore acceded to the CLC 92 in September 1997.

Under Fund 92, oil companies and oil traders that receive more than 150,000 tons of crude and fuel oils in the preceding year, in a State party to the Convention, are required to contribute to the 1992 International Oil Pollution Compensation (IOPC) Fund. The amount of contribution by each company is computed on a per ton basis, depending on the amount of oil received by the company. The major oil companies and oil traders in Singapore will bear the Republic's share of contribution to the 1992 IOPC Fund. The amount to be paid each year will depend on the number and size of oil spills in the States party to the Fund 92, the amount of claim that exceeds the limit of the CLC 92, the cost and expenses of the administration of Fund in the relevant year and any deficit from operations in preceding years.

By acceding to the Fund 92, Singapore has reaffirmed its position of responsibility in ensuring that compensation is also available to victims of oil pollution where there is no liability upon the shipowner under the CLC (e.g. if the damage resulted from an exceptional natural phenomenon, an intentional act or omission by a third party) or where the owners are financially incapable of meeting their obligation under the CLC.

End of Statement.