Emirates National Oil Company (ENOC) today issued the following statement regarding its gas shipment to Ceylon Petroleum Corporation (CPC).
"Further to the concerns raised on the gasoil cargo for Ceylon Petroleum Corporation (CPC), ENOC would like to reiterate that independent sample testing undertaken has conclusively proved that ENOC's cargo had met all specifications outlined by CPC.
"CPC had rejected the cargo claiming that it was off-specification. ENOC's request for a joint testing at Colombo was turned down, as well as ENOC's offer to provide alternate cargo, which is contrary to precedence set by CPC in similar situations concerning other suppliers. ENOC was also barred from further tender participation, an ENOC spokesperson told Emirates News Agency (WAM).
"ENOC promptly informed the vessel owner's protecting Insurance club (P'&'I Club) and put them on notice for possible contamination of cargo during voyage. The vessel owner's P'&'I Club obtained independent samples of the gasoil cargo taken from vessel tanks at the Colombo anchorage, which were inspected at an independent laboratory in Singapore,'' he added.
"The tests revealed that the cargo met the specifications on DSEP as required by CPC. Following CPC's rejection of cargo, ENOC had no option but to sail the vessel from Colombo to Singapore immediately. The cargo was later sold to another buyer without any issues.
"ENOC has submitted the report to CPC and requested CPC to review the processes at their end. Following the cancellation of ENOC's order and barring the company from participating in future tenders has resulted in the elimination of a competitive supplier.
"It is observed that subsequent tenders floated by CPC were won by other suppliers at significantly higher premiums and higher interest rates than those offered by ENOC.
"ENOC wishes to reiterate that as a government-owned entity in the UAE, the company has always supported CPC's requirements, providing fuel as specified, and at cost-competitive rates. ENOC had won 10 tenders last year, all of which were delivered to CPC without any concerns on the quality of cargo.
"ENOC has noted from various reports in the Sri Lankan media that in earlier instances, where certain parties had supplied off-spec product, they were granted the flexibility by CPC to replace the cargo and were not barred from tender participation.
"As clarified in ENOC's media statement, on June 29, 2013, ENOC was not at fault in the gasoline issue in 2011 and even in this case, even though ENOC was denied the opportunity of a joint test, ENOC was ready to replace the gasoil cargo at no extra cost to CPC. Further, as has now been verified, after independent tests in Singapore, the DSEP rating (the basis for cargo rejection) was within the contractual specification.
"We will continue to uphold the highest standards in all our operations and remain committed to our partners in Sri Lanka."