Indian Sailors Protest Officers’ Sentencing In Korea

The shipping community in India has stepped up its campaign over the sentencing of two Indian seafarers, Captain Jasprit Chawla and chief officer Chetan Syam, in South Korea in connection with an oil spill in Korean waters in December 2007, media reports said.

‘Angry protesters gathered at the Azad Maidan in Mumbai Tuesday and destroyed electronic products made by the Korea’s Samsung group and pledged to boycott Korean products, especially from Seoul-headquartered group. The protest also saw other unions, like the Maritime Union of India (MUI), the Transport and Dock Workers Union, the All India Railwaymen’s Federation, Aviation Industries Employees Guild and the International Transport Workers Federation (ITF), joining in to condemn the judgment given by the South Korean court. Chawla and Chetan of Hebei Spirit, a very large crude carrier managed by V. Ships, were sentenced December 10 to 18 months and eight months in jail respectively by the Daejeon district court in South Korea. In addition, Chawla was fined thousands of U.S. dollars. This judgment reversed the earlier order of a lower court, which exonerated the two officers. According to the press note by the Indian Seafarers Federation (ISF) and media reports, Hebei Spirit, carrying 2,60,000 tons of crude oil, was anchored near the Port of Daesan on the Yellow Sea coast off Taean County in South Korean waters when a free-floating barge owned by Samsung collided with the ship and punctured it. Some 10,800 tons of oil was leaked along the coast, causing massive pollution and affecting the livelihoods of fishing communities. Shipping and maritime organizations across the board contend that the two officers were not to be blamed for the spillage. On the contrary, their efforts saved lives and prevented the tanker from exploding. The ISF has termed the judgment an “example of criminalization of seafarers for discharging their duties.” Decrying the judgment, Abdulgani Serang, general secretary of National Union of Seafarers (NUSI), accused the Samsung group of manipulation and said the inquiry report of the Korean maritime authorities was an “attempt to implicate the seafarers.”

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Oil rises over $36 on UAE supply cuts

Crude climbed above $36 a barrel today after the UAE joined Saudi Arabia in deepening oil supply curbs to comply with Opec’s biggest-ever output cut last week as it told refiners it would stiffen shipping limits on exports of its main grades.

‘Crude for February delivery was trading up 82 cents at $36.17 a barrel by 0203 GMT. After settling down 9.3%, or $3.63, on Wednesday, not far off the more than 4.5 year low struck a week ago. London Brent crude was up 75 cents at $37.36, after settling down $3.75 on Wednesday. Markets were closed yesterday for Christmas Day. Crude prices have dropped about $110 a barrel since their mid-July peak as the global financial crisis chipped away at fuel demand, spurring Opec producers to cut 5% of global crude production to stem the slide. The Abu Dhabi National Oil Company (ADNOC), the main producer in the United Arab Emirates, the world’s fifth-largest crude exporter, will continue to supply its customers of flagship Murban crude with 15% less than normal contractual supplies in January, while Upper Zakum supplies will be reduced by 3% from the norm. ADNOC said it will reduce supplies of all four crude grades for February, the deepest supply cuts since it started cutting allocations in November. A source with an Asian refiner said the ADNOC cuts were more than expected. “ADNOC had already allocated January volumes, but they reversed the decision, so that messes up our schedule,” the source said. “For February, the reduction volumes are very large, so we may need to adjust our ship loadings.” Analysts and refiners said the notice was hard evidence that one of Opec’s core members was implementing its share of the group’s agreed 2.2 million barrel per day production cut, giving relief to a crude price that had been undermined by worries about adherence to Opec’s cuts.

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Kistefos demands seat at Trico Marine’s table

HOUSTON: Oslo-based Kistefos AS, the largest shareholder in support vessel services provider Trico Marine Services, has sent a letter to Trico’s board of directors requesting that Kistefos Chairman Christen Sveaas and CEO Age Korsvold be appointed to the board, and asking that Trico declassify its board of directors.

‘The letter warned that Kistefos is prepared to take “all appropriate steps” to accomplish its goals, including shareholder action at a special meeting. Private investment firm Kistefos owns 22.8 percent of Trico Marine’s outstanding common stock. Kistefos attributed their actions to Trico Marine’s “poor performance and extraordinary loss of shareholder value” over the past year. After reaching US$43.23 in April 2008, Trico Marine shares have fallen 90 percent in value. The company’s indebtedness has increased to over US$800 million in the last year, and its ratio of debt to enterprise value is over 90 percent. Kistefos alleges a litany of poorly regarded business decisions, including failure to maximize returns in its core supply fleet while making insufficient investments in renewing and enhancing the fleet, failure to capitalize on the recent opportunities in the charter market and initiating an “ill timed fundamental change in its business focus” by making acquisitions in the subsea segment. As a non-U.S. company, Kistefos also wants an end to Trico Marine’s Jones Act fleet, as it restricts foreign share ownership and limits the demand for and liquidity of Trico Marine shares. The letter also accused Trico Marine of having a hostile attitude towards shareholders, giving as examples the discontinuation of a share buy back program, adopting advance notice bylaws and maintaining “opaque disclosure properties.” Trico Marine officials were unavailable for comment.

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