Cynthia Busuttil
Clutch of oil tankers anchored off Malta
When the price is right: Oil tankers anchored at Hurd's Bank. Photo: Darrin Zammit Lupi.
Some 30 tankers remain anchored a few miles off Malta, months after experts said companies had bought oil when it was at its lowest price and stored it at sea.
Back in June, Reuters had said about 20 million barrels of oil, around a quarter of the world's daily demand or enough to supply the island for three years, were anchored at sea just outside Malta's territorial waters.
According to Sullivan Maritime general manager Joe Bugeja, it was a well known fact in the industry that there were oil products stored at sea outside Malta.
Not all the tankers are laden with oil products. "There are vessels awaiting orders, others waiting for a crew change, others for the price of oil to go up," he told The Times. He said it was difficult to say how long the tankers would remain off Malta. "It depends on how much they bought the oil for, how long they are willing to wait and a number of other factors," he said.
Other industry sources said it was cheaper for shipping companies to leave the tankers at sea, outside territorial waters where they were not paying anchorage charges. "It is much cheaper to leave them out there," the sources said.
Other tankers are waiting for their next assignment since the global recession had badly hit the shipping industry.
In fact, lower demand for shipping pushed down the price of leasing tankers, which came as an added bonus for companies which bought stocks of oil when the prices were low and were storing them at sea until the prices went up.
The price of oil has indeed risen recently but, at under $80 a barrel, it is still far from the almost $150 high it reached last year.
The lack of demand for oil is one reason why the tankers may not be unloading their stocks, industry sources said. Another scenario could relate to the futures markets, contracts that oblige a buyer and seller to exchange a product at a future date at a prearranged price. The lower costs of leasing tankers could make it more attractive for oil to be stored at sea until the contract date comes round.
In June, Reuters reported that American investment bank JPMorgan Chase and Co. had hired a tanker to store gas oil off Malta's coast.
The tankers are at Hurd's Bank, some 18 miles off Malta, and fears had been expressed that they could pose a major environmental threat to the island in the event of a leakage. But the Malta Maritime Authority had given a reassurance that the anchored vessels did not pose a greater or lesser risk than normal daily traffic.
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Christian Sciberras
Nov 10th 2009, 09:20
It doesn't concern me in the least, but I'd like to point out that if they were anchored in a shipyard/harbour, a leak could be contained.
It's counts more harder to do this in open sea.
tony abela
Nov 10th 2009, 09:05
Isn't this a clear proof of how badly our Government and Enemalta are handling the energy sector? These companies are doing this for their own pockets, but the government and enemalta don't care about our pockets.
A.Gatt
Nov 10th 2009, 08:12
@J.Falzon & Stephen Sammut
They are very visable indeed. Driving down from Gozo at 11pm these past two nights they have been stationed beyond Ghadira bay. Very visable. So much so that I stopped at the viewing spot in the bypass to get a good look of them. They change positions quite often, sometimes they are on the opposite side of Ghadira bay and you can see them when you come down from the Mellieha bypass making your way to Ghadira.
=)
Joseph W. Galea
Nov 10th 2009, 07:47
They will move on when they run out of food for the crew. Maybe will all come into Malta and make the ship chandlers rich. ;-)
D Zerafa
Nov 9th 2009, 20:54
They are clearly visible from Marsascala
simon camilleri
Nov 9th 2009, 20:32
of course you can see them. come to sliema and look East. Sometimes there are more lights there than on land!
Galea. L
Nov 9th 2009, 19:19
Stephen Sammut
Where did you get the idea that you don't see them?
You can see them with the naked eye.
They are only 12 nautical miles out in front of Grand Harbour.
You can even see Sicily when the weather is clear and you don't need to be very high up.
You can even see Sicily from De La Salle College in Cottonera and the same area.
e.cortis
Nov 9th 2009, 15:10
I wonder why our Government or whoever is responsible, did not do the same and buy oil when it was so cheap. This should teach u our authorities a lesson. Now these companies will sell their oil when the prices are high and make a lot of money out of these transactions.
Make hay while the sun shines. Wise men do just that !!.
Galea. L
Nov 9th 2009, 15:06
J. Falzon
Hurd Bank is only 12 miles away.
For information on every ship in the neighborhood have a look at http://9h1av.topcities.com/vapuri.html
You can zoom the map in and out and the putting the pointer on the symbols (squares etc) gives you the name of the ship. If you click on it it gives you further details on the ship.
Tonio Bone
Nov 9th 2009, 13:43
The MMA has a very diplomatic theory in saying these tankers constitute the same hazard as the daily traffic of merchant shipping plying the lanes just outside Malta. Having a truck loaded with dynamite pass by your house is one thing, having it parked outside your house for two/three months is another!
I should think we make some money out of this, but is it really worth the risk?
Stephen Sammut
Nov 9th 2009, 13:42
@J Falzon
No they're not visible. You'd need to get somewhere high (Mdina) and use a telescope. However if you look NE on a clear, clean night, you might see SOME of their lights.
J. Falzon
Nov 9th 2009, 12:25
At this distance, are they visible from land with the naked eye?