MANILA, Philippines – Shogun Ships Company Incorporated (SSCI), owner of MT Terranova, tapped publicly-listed Philippine company Harbor Star Shipping Services to salvage the tanker carrying 1.4 million liters of industrial fuel oil which sank on Thursday, July 25, off Bataan province near Manila Bay.

The no-cure, no-pay contract between both parties includes oil spill response operations to minimize possible environmental damage, Harbor Star told the Philippine Stock Exchange (PSE) on Friday, July 26. The maritime services provider immediately sent its tugboats and salvage equipment to Bataan.

A no-cure, no pay contract means that Harbor Star will not be paid if it is unable to fulfill the terms of the agreement.

The Philippine Coast Guard (PCG) reported that MT Terranova capsized and eventually submerged at 1:10 am on Thursday, around 3.6 nautical miles or around seven kilometers east off Lamao Point in Limay, Bataan. Sixteen crew members were rescued while the body of the last missing crew member was located by BRP Melchora Aquino later in the afternoon.

The maritime incident happened even though the weather disturbance from the southwest monsoon or habagat had already weakened on Thursday.

Harbor Star was one of the companies tapped in last year’s Mindoro oil spill, after MT Princess Empress sank on February 23, 2023 off the coast of Naujan, Oriental Mindoro. Similar to this new incident, MT Princess Empress left Limay, Bataan with 900,000 liters of industrial fuel oil. It was owned by Reield Marine Services and was chartered by a San Miguel shipping subsidiary to transport the black oil to Iloilo.

Limay Mayor Nelson David told Radyo 360 on Friday that around 400 to 500 liters of the vessel’s engine fuel leaked. There are no reports yet if the industrial fuel oil it was carrying was already spilling, as of writing.

The Department of Environment and Natural Resources has deployed its survey vessel BRG Hydrographer Presbitero to locate the sunken ship.

PCG also deployed three 44-meter multi-role response vessels for the oil spill response operations.

“These vessels will start the application of oil dispersants to immediately mitigate impact, especially during the period where siphoning is being prepared,” said PCG Commandant Ronnie Gil Gavan on Thursday.

According to Gavan, the PCG hopes to finish siphoning operations in seven days.

“The vessel sunk 34 meters deep which is considerably shallow. Siphoning will not be very technical and can be done quickly to protect the vicinity waters of Bataan and Manila Bay against environmental, social, economic, financial, and political impacts,” said PCG spokesperson Rear Admiral Armando Balilo.

However, the spokesperson said they are still preparing for the worst-case scenario. At 1 pm Friday, PCG officials met with representatives from SSCI and salvor Harbor Star to discuss the timeline of siphoning operations.

“Walang dapat ipag-alala, pero hindi kami nagpapakampante,” Balilo said. (There’s nothing to worry about, but we will not be complacent.)

In the worst-case scenario, vicinity waters of Parañaque, Manila, Navotas, Bulacan, and Pampanga would be affected.

“We are utilizing our manpower, mobilizing our resources, consulting with experts, and collaborating with LGUs and other stakeholders to avoid a marine environment catastrophe,” said Balilo.

Balilo also clarified there was no public storm warning signal raised over Bataan when MT Terranova set sail.

Currently, the PCG is conducting a joint marine casualty investigation with the Maritime Industry Authority.

The Philippines’ largest oil firm Petron Corporation has volunteered to help in the oil spill response. Petron, part of the San Miguel Group of companies, operates a refinery in Limay.

‘Foot the bill’

Groups have called on the government and the shipowner to control the spread of the oil spill to prevent harm to the environment and coastal communities.

“The owners of MT Terranova and its cargo must come forward and claim responsibility: foot the bill for any environmental damage this may cause, and provide compensation to the communities affected,” said Jefferson Chua, climate campaigner for Greenpeace.

“The government must also ensure that the full weight of our legal system is applied to ensuring justice for the people of Limay and the other communities in the area,” Chua added.

International organization Oceana stressed the implementation of the recently passed Philippine Ecosystem and Natural Cost Accounting System (PENCAS) law to estimate the cost incurred from the maritime disaster.

“All those responsible for failing to prevent this tragedy – from concerned government agencies to private owners of the tanker – should be held accountable,” said Gloria Estenzo Ramos, vice president of Oceana.

“Considering the oil spills’ destructive impacts on our fishing grounds and habitats, not to mention that majority of our population rely on a healthy and productive marine ecosystems for sustenance, it is time to impose even higher penalties and stricter accountability measures and implement the PENCAS law,” added Ramos. – Rappler.com