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INCIDENT OVERVIEW
Whilst on voyage to Iloilo from Limay, the 1415 DWT tanker, TERRANOVA encountered adverse weather conditions off the coast of Limay, Bataan, early morning on July 25. In difficult conditions and with the ship taking on water and listing significantly the Captain made the prudent decision to abandon ship and, at 1:05AM local time, the TERRANOVA sank.
Sadly, despite the best efforts of crew and rescuers from the Philippines Coastguard, one seafarer from the Terra Nova passed away. The remaining 16 members of crew were all rescued.
The TERRANOVA is now resting on the seabed 3.6 nautical miles (6.7km) off the coast of Limay, Bataan.
The siphoning operation to remove the 1,468,896 litres of oil was completed on the 12th of September. A total of 1,404,182 litres of oil were removed from the vessel alongside 17,139 litres collected from the sea surface, representing a 97.435% recovery rate. The remaining oil is believed to have been lost to natural biodegradation, dissipation, absorption into sorbent booms and debris, or residuals sticking to the walls and sludge.
VESSEL DETAILS
VESSEL NAME
Terra Nova
IMO NO.
9092666
VESSEL TYPE
Tanker
FLAG
Philippines
YEAR OF BUILD
2002
GROSS TONNAGE
498
DEADWEIGHT TONNAGE
1415
LATEST PRESS STATEMENTS
JOINT PRESS STATEMENT
IOPC FUNDS AND STEAMSHIP MUTUAL OPEN JOINT CLAIMS SUBMISSION OFFICE FOR TERRANOVA INCIDENT
London and Balanga City, 22 October 2024
The IOPC Funds and the insurer of the Terranova, Steamship Mutual Underwriting Association Ltd. (Steamship Mutual), have opened a Claims Submission Office (CSO) to facilitate the submission of claims for compensation by those affected by the oil pollution damage caused by the incident, which occurred off the coast of Manila, Philippines, on 25 July 2024.
The Philippines is a 1992 Fund Member State, and it has been confirmed that the oil from the vessel is persistent and that the MT Terranova qualifies as a 'ship' under the 1992 Civil Liability Convention (1992 CC). As a result, both the 1992 CLC and the 1992 Fund Convention apply to this incident. Based on the latest available information, there is a possibility that compensation claims may exceed the shipowner's limit of liability under the 1992 CLC, which means the 1992 Fund may be called upon to pay compensation. However, as the insurer is a member of the International Group of P&I Associations, the Small Tanker Oil Pollution Indemnification Agreement (STOPIA) 2006, would apply to this incident. Under STOPIA, the insurer will indemnify the 1992 Fund for any compensation paid above the shipowner’s limit, up to a maximum of SDR 20 million.
Following the incident, clean-up and response operations commenced and are currently at an advanced stage, with fuel removal operations on the vessel being completed. The cargo tanks of the Terranova have been emptied and 97% of the cargo has been removed or recovered during at-sea response activities.
The IOPC Funds and Steamship Mutual have been working in close cooperation since the incident occurred and have signed a Memorandum of Understanding (MoU) aimed at ensuring the effective handling of the incident. A team of local experts and representatives has been appointed to manage the CSO, which is now open to assist claimants.
Further details about the CSO are available via a dedicated ‘Information for claimants’ page on the IOPC Funds website, which also includes claim forms and general information about the incident and the claims process. Additional information regarding the incident, including ongoing response operations, is available here: https://www.terranovainformationcentre.com/
Any claims-related correspondence or questions should be addressed to the CSO below:
Terranova CSO
Unit 2, Ground Floor
Lou-is Building, Capitol Drive
San Jose, Balanga City, 5100 Bataan
Philippines
Email: claims.terranova@iopcfundsclaims.org
Further information about the IOPC Funds can be found here: www.iopcfunds.org
Further information about Steamship Mutual can be found here: www.SteamshipMutual.com
Notes to Editors
About the International Oil Pollution Compensation Funds (“IOPC Funds”)
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The international regime for compensation of people or entities affected by oil pollution damage is based on two international Conventions, the International Convention on Civil Liability for Oil Pollution Damage, 1992 ("1992 Civil Liability Convention") and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 ("1992 Fund Convention").
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The 1992 Civil Liability Convention and the 1992 Fund Convention were adopted with the aim of ensuring prompt payment of compensation after an oil spill without the need for victims to prove any negligence.
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The 1992 Civil Liability Convention therefore imposes strict liability (liability without fault) for pollution damage upon the shipowner and requires them to insure against that liability. The shipowner is normally entitled to limit their liability to an amount calculated by reference to the tonnage of the ship. In practice, the compensation is usually paid by the shipowner’s Protection and Indemnity insurer.
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The International Oil Pollution Compensation Fund 1992 ("1992 Fund") was established under the 1992 Fund Convention. The Fund’s purpose is to provide additional compensation in cases where the amount payable by the shipowner or their insurer is insufficient to provide full compensation to the people or entities affected by oil pollution damage, up to a maximum of SDR 203 million (USD 271.6 million) including any amount paid by the shipowner and their insurer.
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The Supplementary Fund was established under the Supplementary Fund Protocol, which entered into force on 3 March 2005, and provides additional compensation up to a maximum of SDR 750 million (USD 1 billion), including any compensation paid by the 1992 Fund and the shipowner and their insurer.
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The IOPC Funds are funded by contributions from receivers in Member States of crude oil or heavy fuel oil (contributing oil) by sea transport. The 1992 Fund has 121 Member States and the Supplementary Fund has 32 Member States.
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The Director of the 1992 Fund is ex officio Director of the Supplementary Fund.
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The 2010 HNS Convention, which has not yet entered into force, was adopted in 1996 with the aim of providing compensation to victims of damage caused by the maritime transport of hazardous and noxious substances (HNS) and was subsequently amended by a Protocol in April 2010 (2010 HNS Protocol). As at 10 October 2024, there were eight Contracting States. A minimum of 12 States must ratify and a number of other requirements must be fulfilled, before the 2010 HNS Convention can enter into force.
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Conversion of currencies in these notes has been made on the basis of the rates on 10 October 2024, i.e., 1 SDR (Special Drawing Right) = USD 1.338370
UPDATE – MANILA, September 27 2024
Owners have commissioned a bathymetric survey which will help understand the exact location and depth of "TERRANOVA". The bathymetric survey will guide their next steps, based on its scientific and technical explanations and future actions in respect of the "TERRANOVA".
The oil recovered ashore is in the process of being safely and lawfully disposed of by the Contractor Harbor Star and their sub-contractors RMB.
Malayan Towage & Salvage remain retained in the unlikely event of leaks from "TERRANOVA" and continue to monitor the Wrecksite.
The bathymetric survey report was received on the evening of 27 September 2024 and will be shared with the Philippines Coastguard and a meeting requested once this has been fully commissioned to discuss next steps.
UPDATE – MANILA, September 6 2024
The Owners remain in close communications with the IOPC Fund and are in the process of setting up a claims collection and notification process in order to ensure that those affected by the incident are able to file their claims and supporting materials for fair and reasonable compensation arising out of the Incident.
The Owners hope to be in a position to launch the portal and claims centre at Bataan on 11 October 2024 and will provide further details as to this process once this goes live.
FAQ
1. WHERE AND WHEN DID THE VESSEL SINK?
Early on the 25th of July, the Terranova sank during adverse weather having left Limay on passage to Iloilo. Terranova is currently resting on the seabed 3.6 nautical miles (6.7km) off the coast of Limay, Bataan.”
2. WHAT WAS THE CAUSE OF THE SINKING AND WHAT HAPPENED TO THE CREW?
Terranova sank as a result of adverse weather conditions during typhoon Gaemi.
Sadly, 1 of the 17 crew members aboard the Terranova lost their life during rescue operations. The deceased's body was recovered later that day off the coast of Limay. All other crew members were unharmed
3. WHAT WAS THE CARGO ON BOARD?
The Terranova was carrying 1,468,896 litres of IFO 230 and had approximately 27 metric tonnes (mt) of bunkers of biodiesel on board.
4. WHO IS THE SHIP OWNER, AND WHAT ARE THE VESSEL'S DETAILS?
Terranova is owned and operated by Shogun Ship Co. Inc., an all-Filipino-owned family corporation established in 2002.
Terranova (IMO: 9092666), is a double-hulled oil products tanker built in 2002 with a deadweight tonnage of 1415 and a gross tonnage of 498.
Terranova sails under the Philippine flag with P&I Insurance through Steamship Mutual and is registered with the Philippine Registry.
5. WHAT AREAS HAVE BEEN AFFECTED BY THE OIL SPILL?
Bulacan, Cavite, Bataan.
6. WHAT IS ITOPF?
ITOPF is a not-for-profit organisation that responds to incidents involving oil or chemical spills worldwide, with an international team with expertise in spill response and claims analysis & damage assessment. ITOPF’s services are provided to its member shipowners and their insurers, as well as governments and intergovernmental organisations such as IMO and the IOPC Funds.
7. HOW WILL COMPENSATION CLAIMS BY AFFECTED INDIVIDUALS BE MANAGED
A claims office is being set up in the affected area, where local assistance will be provided for the submission of claims for compensation for damage or losses as a result of the pollution. Claimants may be individuals, partnerships, companies, private organisations or public bodies, including States or local authorities. Claims are assessed according to criteria established by the Governments of Member States. These criteria are set out in the 1992 Fund’s Claims Manual, which is a practical guide on how to present claims for compensation
8. WHERE WOULD FUNDING FOR CLEAN-UP COSTS AND COMPENSATION CLAIMS BY AFFECTED INDIVIDUALS COME FROM?
Philippines has ratified the International Convention on Civil Liability for Oil Pollution Damage (CLC) and the International Convention on the establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (1992 Fund Convention), both of which provide a legal framework on the funding for reasonable clean-up costs and other claims for pollution damage relating to the incident. The CLC and the Fund Convention cover claims for pollution response, damage to property, economic losses in the fisheries and tourism sectors and costs of reasonable measures to reinstate the environment. The CLC provides the first level of compensation by owners of the vessel, which is covered under the terms of P&I insurance cover. The second level of compensation comes from contributors to the 1992 Fund, and is administered by the International Oil Pollution Compensation Funds (IOPC Funds) International Oil Pollution Compensation Funds 1992 (the 1992 Fund). Please see the following links for further information on CLC, the 1992 Fund Convention and International Group:
Under the International Convention on Civil Liability for Oil Pollution 1992 (CLC), Shogun Ship Co. Inc's liability is capped to SDR 4.51 million (see below on “What is an SDR”). However fortunately the Philippines has ratified the 1992 Fund Convention. The 1992 Fund pays compensation when the damage exceeds the limit of the Shipowners liability under the 1992 CLC, up to a max amount of SDR 203 million.
9. WHAT IS THE SDR?
The SDR is an international reserve asset. The SDR is not a currency, but its value is based on a basket of five currencies—the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
When fixed exchange rates ended in 1973, the IMF redefined the SDR as equivalent to the value of a basket of world currencies. The SDR itself is not a currency but an asset that holders can exchange for currency when needed. The SDR serves as the unit of account of the IMF and other international organizations.
The above information is taken from IMF’s website. For more information on the SDR, please refer to:
10. WHAT IS P&I INSURANCE?
P&I insurance stands for protection and indemnity insurance, which is a form of insurance that provides cover for a shipowner against liabilities from third parties arising out of the use and operation of their vessels. Such insurance covers a wide range of liabilities, which include, among others, loss of life/property and personal injury to crew, pollution, wreck removal and damage to property, such cover being subject to the insured vessel satisfying certain rules (Club Rules).
11. WHAT IS H&M INSURANCE?
H&M insurance stands for hull and machinery insurance, which is a form of insurance that provides cover for shipowners against physical loss or damage to the vessel's hull, machinery and everything connected therewith.
12. DOES THE VESSEL HAVE P&I INSURANCE?
The vessel is entered with Steamship Mutual Underwriting Association Ltd, a member of the International Group of P&I Clubs. The vessel has cover in relation to P&I liabilities as mentioned above among others, such cover being subject to fulfilment of the Club Rules.
13. WHAT IS THE CLC?
The CLC, which is short for the Civil Liability Convention, was adopted by States Parties including the Philippines to ensure that adequate compensation is available to persons who suffer oil pollution damage resulting from maritime casualties involving oil-carrying ships.
14. WHAT IS THE IOPC FUNDS?
IOPC Funds provide financial compensation for oil pollution damage that occurs in member states, including the Philippines, resulting from spills of persistent oil from tankers. The Funds works in tandem with the CLC, covering compensation that is beyond the applicable limitation amounts in the CLC.
MEDIA ENQUIRIES
For all media enquiries, please contact:
Gina Virtusio
+63 918 800 4462