Incident in the Philippines – Terranova

Photo Credit: Philippine Coast Guard

On 25 July 2024, the MT Terranova, carrying 1.4 million litres of industrial fuel, capsized and sank off the coast of Manila, the Philippines.  The IOPC Funds understands that as a result, an oil slick was seen to spread from the location of the incident and that measures have been taken to prevent significant impact to the coastline and marine environment.

The Philippines is a 1992 Fund Member State. Therefore, the IOPC Funds has been liaising  with the Member State and the ship’s insurer, the Steamship Mutual P&I Club, to determine whether the 1992 Civil Liability Convention (1992 CLC) and the 1992 Fund Convention apply to this incident.  At this stage, it is confirmed that the vessel is a tanker and that its cargo appears to be persistent oil. As such, the incident will be covered in the first instance by the 1992 CLC.  There is a risk that claims for compensation may exceed the shipowner’s limit of liability under that Convention, and the 1992 Fund may be called upon to pay compensation. However, since the insurer is a member of the International Group of P&I Associations, the Small Tanker Oil Pollution Indemnification Agreement (STOPIA) 2006, would apply to this incident.  Under STOPIA, the insurer will indemnify the 1992 Fund for compensation paid above the limit of the shipowner up to a maximum of SDR 20 million.

The IOPC Funds will continue to cooperate with the Government of the Philippines and the Steamship Mutual P&I Club and will report on developments in respect of this incident at the November meeting of the IOPC Funds’ governing bodies.