Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Canada orders seizure of oil tanker carrying crude from Iraqi Kurdistan

Published 2017-07-04, 04:41 p/m
© Reuters.  UPDATE 1-Canada orders seizure of oil tanker carrying crude from Iraqi Kurdistan

(Adds details of warrant and claim)

By Nia Williams

CALGARY, Alberta, July 4 (Reuters) - The Federal Court of Canada has ordered the seizure of a 721,915-barrel cargo of crude from Kurdistan aboard the "Neverland" oil tanker on the request of the Iraq Oil Ministry, court documents show.

The Iraq Oil Ministry has also filed a claim against commodity trading house Vitol S.A. VITOLV.UL and subsidiaries, including Mansel Ltd, the charterer of the ship, and affiliate Finaval Spa di Navigazione, the owner of the ship, for $32.5 million.

Iraq claims the cargo was unlawfully misappropriated by the Kurdistan Regional Government and sold to Vitol to be loaded onto the "Neverland."

Vitol did not immediately respond to a request for comment.

The court action, dated June 29, is the latest step in a long-running battle between the federal government in Iraq and the Kurdistan Regional Government over who has the right to export and market crude from the semi-autonomous region.

The "Neverland" loaded in Ceyhan in Turkey, according to the court documents and Reuters shipping data last showed it off the coast of Nova Scotia in the western North Atlantic. It was not immediately clear where the cargo was headed.

Last week, Kurdistan's natural resources minister told Reuters its crude buyers had said they were not taking crude to the United States to avoid upsetting the central government in Baghdad. In a claim the Iraq Oil Ministry said it had advised Vitol before it bought the cargo that any purchase of crude from the Kurdistan Regional Government would violate the rights of the people of Iraq.

Vitol went ahead and bought and loaded the crude anyway, and has refused demands to discharge the cargo into the control of the Iraq Oil Ministry, the court documents allege.

The documents were signed and dated in Halifax, Nova Scotia, and Iraq is asking the case be tried there. (Editing by Lisa Shumaker)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.