MT Terranova owners deny alleged oil smuggling

The owner of MT Terranova on Tuesday denied allegations that the tanker was involved in oil smuggling or “paihi” amid the ongoing probe into the recent oil spill off Limay town in Bataan where thousands of liters of fuel leaked into Manila Bay from the sunken ship.

“The owners of MTKr Terranova, categorically deny the allegations of smuggling and involvement in ‘paihi’ operations,” the Porta Vaga Ship Management Group said in a statement.

“MTKr Terranova is equipped with a comprehensive CCTV system as part of the company’s proactive measures to prevent oil loss. Since the commencement of its operations, there have been no records of oil loss claims or reports of abnormal losses filed against MTKr Terranova by any of its charterers,” Porta Vaga added.

Last Saturday, Justice Secretary Jesus Crispin Remulla raised the possibility the ill-fated Terranova might be involved in “paihi” or oil smuggling. 

Under the “paihi” system, oil from a large vessel is transferred to smaller craft while at sea to avoid paying taxes.

“We remain committed to upholding the highest standards of service and compliance in the Philippine oil transport sector,” Porta Vaga said.

“We will cooperate fully with all investigations relative to the sinking of MTkr Terranova,” the company assured.

On July 25, the MT Terranova capsized and sank 3.6 nautical miles east off Lamao Point in Limay, Bataan, with one crew member reported to have died during the mishap.

The 22-year old ship was en route to Iloilo with a cargo of 1.4 million liters of industrial fuel before it capsized.

“We are now meeting with local government officials of Cavite, Bataan and Bulacan to assess the impact and cost of the oil spill, especially to families living in coastal towns who depend on fishing for a living,” the company said.

The company said the 498-ton vessel was tasked to haul IFO (Intermediate Fuel Oil) requirements since 2003, “exclusively through legitimate contracts with reputable oil firms in the Philippines.”

“The vessel’s operations conform to all legal standards and are supported by necessary permits, documentation, and clearances from appropriate maritime and port authorities,” it said.

“The vessel has sailed in Luzon, Visayas, and Mindanao and carries with it an exceptional track record of zero oil loss incidents, its reliable and efficient performance because of its unique ability to navigate on shallow waters,” it added. —RF, GMA Integrated News