IOPC Funds delivers online workshop for Petroleum Association of Japan

On 18 February 2025, IOPC Funds’ Director, Gaute Sivertsen, delivered an online presentation as part of an annual oil spill symposium organised by the Petroleum Association of Japan (PAJ).  The event, which is funded by the Japanese Ministry of Economy, Trade and Industry, attracted some 200 senior executives and representatives from the Japanese oil and shipping industries, insurance organisations and governmental departments. The theme of this year’s workshop was ‘Threats to the Major Oil Spill Response Regime’.   

After delivering a brief overview of the role and structure of the IOPC Funds, Mr Sivertsen, focused on the potential impact of international sanctions on the international liability and compensation regime for oil pollution damage. 

He noted that a growing number of tankers were attempting to circumvent sanctions, leading to increased risks to the environment and Member States, potential financial impacts on contributors to the IOPC Funds, non-compliance with IMO tanker safety standards, and concerns about the emergence of a market for substandard oil transportation.   

He drew attention to both guidance issued by the IMO Legal Committee and the obligations on Member States to support safe shipping, before reporting on the measures taken by the IOPC Funds to address this very concerning issue. In this regard, he noted that during their November 2024 meeting, the governing bodies of the IOPC Funds had adopted resolutions on raising awareness of the risks posed by uninsured and unsafe ships (1992 Fund Assembly Resolution No14 and Supplementary Fund Assembly Resolution No6, respectively). Mr Sivertsen explained that the Member States had also endorsed a guidance document for Member States on investigating the circumstances surrounding oil pollution incidents involving uninsured and unsafe ships. He reaffirmed his commitment to protecting the interests of IOPC Funds’ contributors, Member States and the international regime and noted that the reinstatement of the sharing of the costs of compensation between the shipowners and the oil industry was vital to the proper functioning of the IOPC Funds’ system.   

Mr Sivertsen noted that discussions within IMO on this issue were ongoing, with a view to ensuring insurance and other IMO rules are strictly followed, including the tighter enforcement of rules on ship to ship (STS) transfers in the Exclusive Economic Zones of Member States.  He welcomed this action by States.