The shipping company of MTKR Terranova on Tuesday, Aug. 6, dismissed allegations linking them into oil smuggling as the Philippine Coast Guard (PCG) said it has launched an investigation to verify reports that the sunken tanker, as well as two other vessels that leaked oil into Bataan’s coastal waters, were into illegal operations.
In a statement, the Portavaga Ship Management Inc., said it remains "committed to upholding the highest standards of service and compliance in the Philippine oil transport sector."
“The owners of MTKR Terranova categorically deny the allegations of smuggling and involvement in ‘paihi’ operations,” Portavaga said in a statement.
Portavaga said that the MTKR Terranova is equipped with a comprehensive closed-circuit television (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 charterer,” the company emphasized.
PCG spokesperson Rear Adm. Armando Balilo said they will investigate whether or not MTKR Terranova, MTKR Jason Bradley, and MV Mirola 1 were really involved in nefarious activities.
“The allegation that these vessels are involved in smuggling is already being discussed and this will be subject for investigation. Let us wait for the results of the investigation,” he said.
According to reports, the Department of Justice (DOJ) cited intelligence reports as it tagged the three vessels in oil smuggling since it was revealed that they were only three to five nautical miles apart from each other when the sea mishaps happened.
The PCG received a report on July 23 that MV Mirola 1 ran aground in the vicinity waters of Mariveles with two drums full of heavy oil and 3,000 liters of diesel. MTKR Terranova sank off Limay’s coast on July 25 while carrying 1.4 million liters of industrial fuel oil amid rough seas at the height of Super Typhoon "Carina". MTKR Jason Bradley also sank on July 27 off Mariveles’ coast while loaded with 5,500 liters of diesel.
Reports said that DOJ Sec. Jesus Crispin “Boying” Remulla raised suspicion that the vessels were engaged in a “paihi” system. Paihi, which translates to urinate, refers to a smuggling method where a bigger tanker offloads oil to a smaller tanker to avoid paying taxes.
Portavaga said it will cooperate fully with all investigations relative to the sinking of MTKR Terranova.
“MTKR Terranova has been dedicated to hauling IFO 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 noted.
Meanwhile, the owners of MTKR Jason Bradley and MV Mirola 1 have yet to issue statements on the said allegations.
US experts arrive
Relatedly, an eight-member team of maritime experts from the United States Coast Guard (USCG) and National Oceanic and Atmospheric Administration (NOAA) arrived in Limay on Tuesday to help in the ongoing recovery operations of MTKR Terranova.
Balilo said the experts visited the incident command post at Lamao Port to provide technical assistance to the incident management team leading the efforts to contain the leak of 1.4 million liters of industrial fuel oil onboard the sunken tanker.
“So far, there is no more leak, only seepage. Our target is to finish the production of the metal caps this week so we can install them next week. This is in pursuant to the wisdom of marine engineers and naval architects that we need to stabilize first the ship before the siphoning starts,” Balilo said.
The contracted salvor, Harbor Star Shipping Services Inc., is producing 19 metal caps that will be used to seal the valves and pipes of MTKR Terranova to prevent leak when the siphoning of the cargo fuel starts. Five other valves have already been sealed, according to the Coast Guard Station Bataan.
“When we do the siphoning, a boring machine will be used to drill the ship and drain the oil. If the integrity of the ship is compromised, the temporary caps [made from a special type of canvass] that we installed to contain the spill might be removed and we will have a bigger problem. Our priority is the sealing of the valves,” Balilo explained.
The experts will lend their expertise in coastal management to address the aftermath of the oil spill, determining the weather before the siphoning starts, as well as the most effective method and equipment to use depending on the type of weather.
Aside from that, the experts will also help in the recovery operations for MTKR Jason Bradley and MV Mirola 1.
Siphoning operation for MTKR Jason Bardley, it turned out, has been postponed as the contracted salvor – FES Challenger Salvour and Builders – prepares the needed equipment, while 790 liters of oil-water mixture and five sacks of contaminated oil debris using absorbent pads from MV Mirola 1 were already recovered by the PCG.