Tags: osg | iran | trade | sanctions

OSG Says Oil-Tanker Pool Will Halt Iran Trade After Sanctions

Friday, 10 February 2012 12:41 PM

Overseas Shipholding Group Inc., the largest U.S. crude-tanker owner, said the pool in which its ships operate will no longer go to Iran after the European Union agreed to an embargo on oil from the Persian Gulf nation.

Tankers International LLC, which manages a pool of vessels from seven companies including OSG, told the New York-based company that the trade will end because of “regulations adopted by the European Union in late January 2012 and other factors,” Chief Executive Officer Morten Arntzen said in an e-mail today. Insurers are no longer able to cover such voyages, he said.

OSG “complies with all applicable laws and regulations concerning where and to whom OSG trades its vessels,” Arntzen wrote. “As these laws and regulations change, OSG will comply with the changes.”

The EU agreed Jan. 23 to a phased-in ban on the purchase, transport, financing and insurance of Iranian oil. The embargo still needs to be implemented by the European Commission, the bloc’s regulatory arm. The sanctions will extend to about 95 percent of tankers because they are insured under rules governed by European law, Andrew Bardot, the London-based secretary and executive officer of the International Group of P&I Clubs, said in an interview Jan. 26.

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Friday, 10 February 2012 12:41 PM
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