Business

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.

Published

4 years ago

February 10, 2023

Admin

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

Legal

Shell Singapore charged over Pulau Bukom oil leaks, reporting delays

Shell faces four charges under Singapore’s Prevention of Pollution of the Sea Act over two 2024 oil discharge incidents at its Pulau Bukom facility.

Published

1 day ago

September 25, 2026

Admin

2 MPA craft (left) supporting Shell craft in the clean up operations of the oil sheens taken on 28 Dec 9am

Shell Singapore has been charged over two incidents in 2024 involving oily mixtures discharged into Singapore waters from its facilities at Pulau Bukom, according to media reports on Tuesday (22 September).

The company faces four charges under the Prevention of Pollution of the Sea Act, including allegations that it failed to report the discharges to the port master immediately.

The first incident occurred on 20 October 2024, when approximately 40 metric tonnes (mt) of oily mixture was discharged through a hole in a pipeline at the Shell Singapore Energy and Chemicals Park at about 8am.

Shell is accused of reporting the incident to the port master at about 12.55pm, several hours after the discharge occurred.

The second incident took place between 26 and 28 December 2024. An estimated 485kg to 956kg of oil mixture was discharged into Singapore waters from the same facility.

Shell is accused of failing to report the incident immediately, with notification to the port master made at about 11.50am on 26 December 2024, according to the charges.

Singapore’s pollution-prevention regulations require occupiers of such facilities to report oil or oily-mixture discharges into Singapore waters “without delay and to the fullest extent possible”.

Shell’s representative requested an eight-week adjournment at the 22 September hearing, citing the need to obtain internal instructions, appoint counsel and locate historical records. The company said the business associated with the incidents had been divested in 2025.

The case was adjourned to October. Shell is also facing prosecution by Singapore’s National Environment Agency over the same incidents.

Photo credit: Maritime and Port Authority of Singapore
Published: 25 September, 2026

Incident

MPA probes Singapore Strait collision involving fishing vessel, bulk carrier

MPA says there were no reported injuries among the crew of either vessel in the incident involving China-registered fishing vessel “Lu Qing Yuan Yu” and Panama-registered bulk carrier “First Margaux” .

Published

1 day ago

September 25, 2026

Admin

Panama-registered bulk carrier “First Margaux”

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said it is investigating the incident involving the China-registered fishing vessel Lu Qing Yuan Yu and the Panama-registered bulk carrier First Margaux in the Singapore Strait on 17 September.

MPA said there were no reported injuries among the crew of either vessel or pollution arising from the incident and navigational traffic was not affected.

Videos circulating on social media showed the bulk carrier colliding with the fishing vessel.

“The fishing vessel took on water during the incident but remained afloat and stable, with the crew taking measures to manage the situation onboard,” MPA said.

The vessel was subsequently towed to Raffles Reserved Anchorage for assessment.

Essential crew remained onboard to support the tow, while the Singapore Civil Defence Force supported the transfer of other crew to shore.

MPA added it also issued navigational safety broadcasts to keep other vessels clear of the tow and escorted the vessel into port with a MPA craft.

Photo credit: MarineTraffic / Arnold Pohen
Published: 25 September, 2026

Mass Flowmeter

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Bunker barge “Kingston Trader” is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

Published

1 day ago

September 25, 2026

Admin

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Global marine fuel supply and procurement firm TFG Marine on Thursday (24 September) said its bunker barge Kingston Trader is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

The company said the latest installation brings the proportion of TFG Marine’s fleet equipped with MFMs to approximately 88%, marking another step in the continued rollout of this technology across its global bunkering operations.

“The barge will operate in Jamaica through our local partnership with Scott Petroleum, becoming the first bunkering vessel in the region equipped with this technology and bringing greater accuracy, transparency and assurance to fuel measurement for customers across the Caribbean,” TFG Marine said in a social media post.

“Together with Scott Petroleum, we look forward to working collaboratively with the Maritime Authority of Jamaica, the The Port Authority of Jamaica, Petrojam Limited and other stakeholders to share our experience of MFM technology, explore its wider benefits and support the continued development of bunkering standards across the region.”

Manifold Times previously reported TFG Marine continuing to expand MFM technology across its US Gulf Coast bunker fleet with Buffalo B414 and Buffalo B304 being fitted with the equipment.

Last year, TFG Marine announced it reached a key milestone in its global digitalisation programme with the installation of an ISO 22192-compliant MFM on the Buffalo 404, a barge on time charter from American bunker barge company Buffalo Marine Service Inc.

The installation was part of TFG Marine’s wider strategy to equip close to 90% of its global bunkering fleet with MFMs by 2026 as a commitment towards improving data integrity, streamlining operations and strengthening trust in marine fuel transactions.

Photo credit: TFG Marine
Published: 25 September, 2026