A 2017-built Long Range I, or LR1 tanker, the Hafnia Nile, which collided with a 24 year old VLCC, the Ceres I, late last week, plans to transfer its naphtha cargo before proceeding for repairs, its operator, Hafnia and tanker brokers said July 22.

Hafnia is working closely with the Malaysia Marine Department and the Maritime and Port Authority of Singapore to develop a safe towage plan and assess a location for cargo transfer and repairs, a Denmark-based Hafnia spokesperson told S&P Global Commodity Insights.

Earlier, Spain-based multinational energy company Cepsa’s spokesperson had confirmed to Commodity Insights that their naphtha from Huelva was onboard the Hafnia Nile. Brokers tracking the cargo said it has an option to discharge in Japan, which will now be delayed.

The Hafnia Nile needs repairs before undertaking any commercial voyages and therefore the naphtha cargo will have to go through a ship-to-ship transfer, said multiple sources tracking the developments.

The tanker is currently in Malaysian waters with a towing connection in place to keep it in a steady position and is attended by four tugs equipped for oil response and firefighting, the Hafnia spokesperson said. The heat assessments have not revealed any hot spots on its external structure, and there are no visible signs of flames or smoke, the spokesperson added.

Over the weekend, Malaysian authorities accused the aging VLCC Ceres I of attempting to flee and detained it for further investigation. The authorities issued a statement saying that Malaysia’s coast guard has found minor traces of an oil spill at the location of the collision.

The Ceres I, operated by China’s Shanghai Prosperity Ship Management, has previously carried Iranian crude, which is subject to US sanctions, according to S&P Global Commodities at Sea. The company could not be immediately reached for comment.

Source: Platts