International Oil Pollution Compensation Funds’ Guidance Clarifying the Definition of a “Ship”
New guidance clarifying the definition of a “ship” under the Civil Liability Convention for Oil Pollution Damage, 1992, has been developed, following five years of consultation.
The International Oil Pollution Compensation (IOPC) Funds developed the guidance following a ruling from the Greek Court of Cessation in 2006 in the Slops case. In the case, compensation from the IOPC Funds were originally rejected but later ordered by the court to be paid for a spill from a waste oil reception facility, formerly a tanker, which was anchored permanently with a deactivated engine.
This adviser discusses the immediate implications of the new guidance for offshore oil and gas vessel owners and operators and its potential insurance implications.