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Malaysia: Success of limitation action following oil spillage damages

Owner of the vessel MT “Trident Star” brought a limitation action to limit its liability regarding pollution damage or loss in relation to a spillage of fuel oil carried on board the vessel in 2016.
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The following article was written by Rajasingam Gothandapan, who is a partner at law firm Shearn Delamore & Co, elaborating on a 2016 case where a plaintiff brought a limitation action to limit its liability regarding pollution damage or loss in relation to a fuel oil spillage incident, on the basis that the incident had occurred by no act of omission of the plaintiff: 

Facts

Plaintiff one was the owner of the vessel MT “Trident Star” (the vessel). On 24 August 2016, while the vessel was berthed at the terminal, a spillage of fuel oil carried on board the vessel as cargo occurred (the incident).(1)

On 7 November 2016, plaintiff one brought a limitation action pursuant to the Merchant Shipping (Liability and Compensation for Oil and Bunker Oil Pollution) Act (MSA) 1994(2) to limit its liability regarding pollution damage or loss in relation to the incident, in accordance with part I of the rst schedule to the MSA 1994, on the basis that the incident had occurred by no act or omission of plaintiff one.

On 17 February 2017, plaintiff one’s limitation action was allowed. On 21 March 2017, plaintiff one set up a limitation fund by depositing into court a security for the amount of 4,510,000 special drawing rights (or its Malaysian ringgit equivalent as at the date of constitution of the limitation fund) plus interest at the rate of 5% per annum from 24 August 2016 up to and including the date of the constitution of the limitation fund. The security was in the form of a letter of undertaking (LOU) dated 16 March 2017 issued by the insurer of the vessel, the Shipowners’ Mutual Protection and Indemnity Association (Luxembourg).

On 11 May 2017, the court further ordered for advertisements pertaining to the limitation fund be placed in two local newspapers. The advertisements provided that all persons claiming oil pollution damage or loss resulting from the incident should:

  • enter an appearance in this action;
  • file claims; or
  • take out a notice of application to set aside the limitation decree.

In response to the advertisements, within the time limit, 19 defendants entered the limitation action to claim for loss and damage from the plaintiffs arising from the incident. None of them disputed plaintiff one’s right to limit its liability.

In view of the possibility that plaintiff one’s liability to pay compensation could exceed the limitation fund,(3) plaintiff two (ie, the International Oil Pollution Compensation Fund 1992) was added to the action.

Subsequently, all the defendants’ claims were settled by plaintiff one on condential terms and all the defendants led their notices of discontinuance. No payment was made out from the limitation fund.

Plaintiff one’s application

Plaintiff one sought an order that the LOU be discharged and be returned by the registrar to plaintiff one’s solicitors for cancellation with liberty to apply. Plaintiff one also sought leave to discontinue the present action with no order as to costs. Plaintiff one submitted that the application herein required the invocation of the inherent jurisdiction of the court under order 92 rule 4 of the Rules Of Court 2012 as there was no provision for the discharge and release of the security that constituted the limitation fund.

Decision

The court held that the LOU should be discharged and returned to plaintiff one for cancellation, as they had settled all the claims made by the defendants without recourse to the LOU or the limitation fund. The time limit for bringing claims had also expired, as the advertisements had been published ve years previously and the time limit for making claims had expired 60 days after the publication of the advertisements. Thus, plaintiff one’s application was allowed and the action was discontinued.

For further information on this topic please contact Rajasingam Gothandapani at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.

Endnotes

(1) Rising Star Shipping Sdn Bhd & Anor v Pelabuhan Tanjung Pelepas Sdn Bhd & Ors [2022] MLJU 1299
(2) Section 6(2) read together with section 7(1).
(3) Pursuant to section 19 of the MSA 1994 and by way of a court order dated 21 September 2017. 

Editor’s Note: This article was originally edited by, and first published on www.lexology.com/commentary

 

Photo credit: Shearn Delamore & Co
Published: 10 February, 2023

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China: Chimbusco and BJEC enter green methanol cooperation agreement

Document was signed between Ding Lihai, deputy general manager of Chimbusco, and Li Jianjun, deputy general manager of BJEC.
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July 8, 2025

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Chimbusco x BJEC MT

China Marine Bunker (PetroChina) Co.,Ltd. (Chimbusco) and POWERCHINA Beijing Engineering Corporation Limited (BJEC) on Thursday (3 July) formally entered into a green methanol strategic cooperation framework agreement.

The document was signed between Ding Lihai, deputy general manager of Chimbusco, and Li Jianjun, deputy general manager of BJEC.

BJEC, a subsidiary of China Power Engineering Group, is experienced in the survey, design, construction and technology research and development of large-scale renewable energy projects.

Moving forward, the two parties said they will respectively focus on their core advantages and work together to promote the production, supply, storage and refuelling of green methanol as an energy source to help support the low-carbon transformation of the shipping industry.

Ding Lihai said: “The shipping industry is one of the important sources of global carbon emissions. Promoting low-carbon fuel is the key to the transformation of the industry. As the main force in the supply of bunker fuel, Chimbusco has been committed to expanding its clean fuel supply capacity. The cooperation with BJEC will integrate the advantages of green energy development and fuel supply, accelerate the large-scale application of green methanol, and meet the needs of shipping companies for clean fuel. We look forward to providing effective solutions for the green transformation of the shipping industry through the joint efforts of both parties.”

Li Jianjun said: “Implementing the ‘dual carbon’ goal is an important responsibility of enterprises. BJEC has accumulated strong technical strength in the field of green energy. This cooperation with Chimbusco will focus on the entire industrial chain of green methanol, from raw materials, production to supply, to provide clean and sustainable fuel solutions for the shipping industry. The complementary advantages of both parties will promote the rapid development of the green methanol industry and inject strong impetus into the low-carbon transformation of the shipping industry.”

 

Photo credit: China Marine Bunker (PetroChina) Co.,Ltd.
Published: 8 July 2025

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Towngas and Royal Vopak collaborate to expand green methanol supply chain network

‘Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia,” said its Chief Operating Officer – Green Fuel and Chemicals.
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July 8, 2025

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Towngas x Royal Vopak MT

Hong Kong and China Gas Company Limited (Towngas) and Vopak China Management Co., Ltd. (Royal Vopak) on Tuesday (8 July) said both recently signed a strategic framework cooperation agreement to collaborate in areas such as green methanol production, storage, bunkering, and trading etc.

Focusing on the Chinese mainland, Hong Kong, and Asia-Pacific markets, both parties are joining forces to expand an efficient green methanol supply chain network and support the shipping industry’s low-carbon transition.

The two parties will capitalise on their respective strengths to expand the supply network of green methanol.

Towngas employs proprietary technology to convert agricultural and forestry waste as well as scrap tyres into green methanol, and has obtained multiple international certifications and provides a sufficient supply of green methanol for maritime fuel bunkering.

Royal Vopak provides green methanol storage and terminal services with its comprehensive storage and terminal infrastructure and coastal port network advantages.

Together, the two parties will achieve efficient resource allocation and ship green methanol to the Greater Bay Area, East China, South China, and the broader Asia-Pacific markets, further expanding the green methanol supply chain network.

Towngas and Royal Vopak will further develop multiple areas of regional cooperation, including in the Greater Bay Area. By leveraging the strengths of the ports in Hong Kong, Shenzhen, and Guangzhou, the partnership will focus on “production and storage synergy” as its core to strengthen cooperation around logistics and terminal facility construction, and to build an integrated green methanol storage and transportation network.

In East China, the two parties will centre their collaboration in Shanghai and Ningbo, two major international ports, to further strengthen cooperation in logistics storage and bunkering facility construction to meet the growing demand for green fuels at both ports.

In the Bohai Bay region, with Tianjin as the strategic hub, Towngas will transport green methanol produced at its northern China production base to Royal Vopak’s local storage tank farm, then achieve resource allocation through the Royal Vopak’s distribution network, supporting the supply of green methanol from northern China to the national and Asia-Pacific markets.

The two parties will also target key export markets, such as Singapore, Vietnam, Japan, and South Korea, to accelerate overseas expansion and boost the market competitiveness of clean energy in the Asia-Pacific region.

“Towngas has recently completed a 6,000-tonne green methanol bunkering project, the largest in Asia,” said Sham Man-fai, Towngas Chief Operating Officer – Green Fuel and Chemicals.

“It was completed with the support of Royal Vopak’s Tianjin storage tank farm facilities, laying a solid foundation for this partnership.

“Towngas’s Inner Mongolia green methanol plant is set to increase its annual capacity from 100,000 tonnes to 150,000 tonnes by the end of this year, with plans to further expand to 300,000 tonnes by 2028. Together with Royal Vopak’s storage and terminal services infrastructure and coastal port network, the two parties will build a comprehensive green methanol supply chain network.”

 

Photo credit: Hong Kong and China Gas Company Limited
Published: 8 July 2025

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SEKAVIN starts new physical supply operations in the port of Istanbul and Izmit Bay

Operation is supported by three marine refuelling barges; namely Tarabya-E, Beykoz- E, and Kalamis-E.
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July 8, 2025

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SEKAVIN BARGE

Piraeus-based bunkering firm SEKAVIN on Monday (7 July) said it has recently started new physical supply operations in the port of Istanbul and Izmit Bay.

The operation is supported by three marine refuelling barges; namely Tarabya-E, Beykoz- E, and Kalamis-E. The bunkering vessels have successfully completed numerous deliveries to seagoing vessels.

According to SEKAVIN, Istanbul represents one of the world’s most strategic and challenging maritime environments. The country sees more than 43,000 annual Bosphorus passages and delivers roughly 2 million metric tons per year in bunkers to receiving ships.

In a statement to Manifold Times, John Tsogas, Global Head of Bunkering at SEKAVIN, noted his company intends to offer partners “a very reliable and flexible service” covering the Northeast Med with Istanbul.

The development is in combination with the bunkering firm’s current physical operations in Syros port, together with their traditional Piraeus physical operations which have been carried out for almost 50 years.

Related: SEKAVIN and GCL to strengthen marine fuel supply and logistics in key bunkering hubs

 

Photo credit: SEKAVIN
Published: 8 July 2025

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