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Tanker Troubles in Nigeria Home Publications Articles Tanker Troubles in Nigeria Tanker Troubles in Nigeria Publications Steamship Mutual Published: October 01, 2019 Contact author Download article pdf Image There has been substantial discussion in the press recently in relation to the difficulties facing commercial parties trying to load oil cargoes in Nigeria. Problems started in July 2015 with the Nigerian National Petroleum Corporation (NNPC) banning 113 tankers from loading cargo in Nigeria. It appears that this ban was subsequently lifted (although it is not entirely clear whether the ban has been fully lifted); at that time NNPC issued a letter on 8 September 2015 which stated that the President approved the consideration of all incoming vessels into Nigerian territorial waters “ subject to receipt of Letter of Comfort from all Terminal Operators and off-takers of Nigerian Oil and Gas as guarantee that nominated vessels are free and will not be utilized for any illegal activity whatsoever ”. The 8 September letter attached the pro forma for the Letter of Comfort which would be accepted – which included amongst other things an undertaking and guarantee “ t o indemnify NNPC or the Federal Government of Nigeria, against all consequences and/or liabilities of any kind whatsoever directly or indirectly arising from or relating to the deployment of the Vessel for activities extraneous to the contract and shall immediately upon demand without NNPC or the Federal Government having to substantiate the demand, reimburse or effect all payment necessitated by such illegal activity by the Vessel .” Clearly this is an extremely broad indemnity – indeed it is not clear what definition would be given to the words “ activities extraneous to the contract ” and whether it could even cover circumstances where pirates come on board despite all efforts made by the Owner, Vessel and crew. Following the issuance of the 8 September letter, there was confusion in the market as to
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