Wednesday, September 27, 2006

Statement from Trafigura Beheer BV re the Probo Koala

Cote d’Ivoire, 19 September 2006

Following inaccurate media reports based on rumour, Trafigura Beheer BV (Trafigura) would like to provide factual information on the Probo Koala, following the discharge of the residue washings (slops) from its gasoline cargo in Abidjan, Cote d’Ivoire, in August 2006.

Trafigura is very concerned about the reports regarding the health of the Abidjan population and is actively seeking ways of assisting the authorities in any and every way that it can. Senior executives from the company are in Abidjan and are working with the authorities there to try to establish what happened after the slops were unloaded.

Trafigura has a stringent policy on the disposal of any waste, according to international conventions, and respects and adheres to all relevant requirements. The slops from the Probo Koala were handed over to a certified local Abidjan slops disposal company, Compagnie Tommy, following Trafigura's communication to the authorities of the nature of the slops, and a written request that the material should be safely disposed of, according to country laws, and with all correct documentation.

Cargo of the Probo Koala
The Probo Koala was carrying gasoline blend stock under a time charter to Trafigura. It is used for floating storage, that is the receiving vessel for cargoes of gasoline blend stock. Cleaning with caustic soda takes place each time it receives a new load of gasoline blend stock. After the cleaning the residue washings (slops) are transferred to the ship’s slop tanks.

The vessel stopped in Amsterdam with the objective of discharging its slops, on its way to collect additional gasoline blend stock from Paldiski, Estonia for delivery to Nigeria. The reason it did not ultimately do so is because the waste disposal company in Amsterdam wanted to renegotiate its original contract. Trafigura was therefore forced to discharge the slops elsewhere, at a location that could both take the slops, and fit in with the vessel’s route. Delays in Amsterdam would have caused further delays in the ship’s schedule (please see further information below).The waste disposed of in Abidjan was the residue washings (slops) from the slop tanks of the Probo Koala, the result of washings from gasoline blend stock delivered to the vessel, as described above. The technical classification of these slops is Basle slops.

Disposal of the slops
These slops were not rejected by any port, including the Port Authorities in Amsterdam. The environmental authorities in Amsterdam became involved only when Trafigura took the decision to reload the slops from the barge of the Dutch waste disposal operator, Amsterdam Port Services (APS), as a result of APS’s desire to renegotiate contractual terms. The Port Authorities then contacted APS to confirm requirements. These concerned whether the slops could legally be reloaded without being technically considered to be an export from Holland (which would necessitate an export permit), and under environmental regulations. The Port Authorities gave their permission to reload the slops on the Probo Koala, subject to Trafigura providing confirmation that these slops were subsequently disposed of appropriately.

Why Abidjan
When APS analysed a sample from slops loaded onto its barge prior to disposal it tried to renegotiate the original agreement made with Trafigura. Trafigura then took the decision to dispose of the slops elsewhere on the ship’s route as any delay in leaving Amsterdam would have a knock-on effect, causing further delays in the ship’s schedule. It would also result in significant financial time penalties – for example, an additional penalty of 250,000 dollars for the next voyage to Paldiski, Estonia. Following completion of its voyage to Nigeria, the most appropriate place, in terms of geography and ability to deal with these slops was Abidjan. Abidjan is considered to be one of the largest and better equipped ports in West Africa.

Ends

For further information please email info@trafigura.com

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