Letters of Comfort requested for trade in Nigerian waters

Follow INTERTANKO Letter of Comfort for Nigeria trade

Letters of Comfort are now being sought to guarantee that the nominated vessel will not be used for any illegal activity in Nigerian territorial waters.

INTERTANKO’s Documentary Committee have met to discuss the issue and advise as follows:

• Do not sign any Letter of Comfort addressed to NNPC.
• Letters of Comfort to charterers are unnecessary. If charterers insist – use INTERTANKO’s modelLetter of Comfort for Nigeria Trade wording, or similar, and seek a back to back Letter of Comfort from charterers.
• Use the INTERTANKO Nigeria Trade Clause (below for ease of reference) in charterparties. This makes the charterer the party responsible for any documents which might be requested from Nigerian Authorities, which would include the Letter of Comfort.
• Take care with Bill of Lading (shore) figures (which must represent the amount the Master reasonably believes he has on board).
• Provide out-turn figures to the terminal whether requested or not.

INTERTANKO Nigeria Trade Clause for use in charterparties

1. To the best of Owner’s knowledge, the vessel is not at the date of this charterparty subject to any ban by Nigerian Authorities from calling at and/or using any Nigerian ports, places or terminals, or sailing within Nigerian waters, whether arising out of any previous calls by the vessel or any other vessel owned or controlled by Owners or otherwise.
2. Charterers are responsible for and will arrange to submit to Nigerian Authorities any documents, information or other material required by Nigerian Authorities in relation to operations at Nigerian ports, places and terminals including offshore terminals under this charter
3. Charterers are responsible and will arrange for out-turn verification at the discharge port, including an independent cargo survey if necessary, such information to be copied to Owners. All expenses and any time lost in obtaining out-turn figures will be for Charterers account.
4. In the event of a breach of sub -clauses 2 & 3 above, Charterers will compensate Owners for all consequences thereof including but not limited to any action against Owners, and/or the vessel, time lost and any expenses incurred as a result of that breach in any subsequent voyage to Nigeria.

The Standard P&I Club recommends resisting providing such a Letter of Comfort as far as possible and, as recommended by INTERTANKO, they would suggest that owners propose that the letter be sought from either the terminal operator or the shipper. If charterers insist that a letter is provided and owners choose to comply for commercial reasons, the Club would suggest amending it so as to follow INTERTANKO’s model Letter of Comfort for Nigeria Trade wording (below) and obtaining a back to back Letter of Comfort from charterers:

Also read Charterers request Letters of Comfort to NNPC

Source: The Standard P&I Club