Information as presented at the October 2017 session of the 1992 Fund Executive Committee

International Oil Pollution 'Providing compensation for www.iopcfunds.org

Compensation Funds oil pollution damage resulting E:[email protected]
from spills of persistent oil T: 44 (0)20 7592 7100
from tankers.' F: 44 (0)20 7592 7111

Agia Zoni II
Date of incident 10-09-2017
Place of incident Saronic Gulf, Greece

Cause of incident Sinking—circumstances under investigation

Quantity of spill Estimated to be in the region of 700m³

Areas affected Salamina Island and areas surrounding Piraeus, Saronic Gulf, Greece
Flag State of ship Greece

Gross tonnage 1597 tonnes

P&I Insurer Lodestar Marine Limited

CLC limit SDR 4.51 million

STOPIA/TOPIA applicable N/A
CLC + Fund limit SDR 203 million

Incident
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Incident
The product tanker Agia Zoni II, manned by 11 crew members, sailed from the HELPE Oil Terminal at Aspropyrgos at 1000
hours on 9 September 2017 and proceeded to anchor at the Piraeus anchorage area, awaiting the arrival of a vessel at the
Piraeus Container Terminal, to which she was scheduled to deliver bunkers late in the evening of the same day.

Upon departure from the Oil Terminal, the vessel is reported to have carried the following quantities of oil products:

Heavy fuel oil 2 362 mt

Marine gas oil (MGO) 370 mt

Total 2 732 mt

The vessel also carried about 15 mt of bunkers (MGO), approximately 300 litres of lubricants and 200–300 litres of
chemicals.

After the vessel anchored in the Piraeus anchorage area, the master allowed seven crew members to proceed to shore to
have a meal, scheduled to return onboard between 2100–2130 hours, leaving four crew members onboard, including the
master.

Having received advice that the bunkering was postponed for the following morning, the master contacted the crew who were
ashore and asked them to return to the vessel early in the morning of the next day of 10 September, while at around 2315
hours, he took with him one of the crew and went ashore to have a meal, leaving the vessel manned by the two remaining
crew members.

At around 0155 hours on 10 September, while waiting to take the launch boat to return onboard, the master received a phone
call from one of the crew members onboard, telling him that the vessel had sustained a list. Approximately five minutes later,
the master received a further call advising him that the situation was getting worse, following which the master contacted a
local tug company requesting the dispatch of two tugs to the vessel for assistance.

The launch boat with the master and the apprentice engineer departed from shore at around 0215 hours and upon arrival at
the casualty site at around 0230 hours, found that most of the ship’s hull was underwater, with only 3 metres of the bow
being visible above the sea level. Shortly afterwards, the vessel disappeared underwater. The two crew members who were
onboard, had in the meantime jumped in the water and were collected by the launch boat and one of the tugs which had
proceeded to the site for assistance.

The owner was subsequently informed, who in turn gave instructions to a salvor to undertake salvage operations. The salvor
sub-contracted clean-up contractors to provide assistance with the antipollution measures.

The master and the chief engineer were initially arrested and then released pending trial for negligence.

Impact
Approximately 4 kilometres of the coastline of Salamina island, and 20-25 kilometres of the heavily-populated coastline south
of Piraeus port and Athens were contaminated, including the oiling of some 300 small pleasure craft berthed in various
marinas along the respective coasts.

In addition to the stranded oil which landed on the beaches and rocks along the coastline, pockets of sunken oil remain in the
vicinity of several beaches, which are in the process of being cleaned up by divers.

Response operations
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Response operations
Under the Greek national contingency plan, responsibility for marine pollution response lies with the Marine Environmental
Protection Division of the Ministry of Mercantile Marine, both manned by personnel of the Hellenic Coast Guard. For their its
part, the owners of the Agia Zoni II appointed a salvors to undertake salvage, oil removal and pollution response activities;
those the salvors in turn appointed a clean-up contractor and several sub-contractors to provide the actual anti-pollution
services.

Shortly after the incident, approximately 600 metres of floating oil boom was deployed in a circle around the casualty,
however, heavy fuel oil patches and slicks, debris and oil sheen were also seen over areas outside the oil boom. A number of
salvor’s craft were mobilised including four tugs, oil skimmer vessels, workboats and a floating crane barge carrying a 20-
foot container with antipollution material positioned over the casualty position, used as a base for the operations. By the
second day after the spill, the salvor had sub-contracted four clean-up contractors to assist with the clean-up operations, with
two further contractors also sub-contracted to one of the four clean-up contractors.

After the hatches and vents on the sunken vessel were sealed, the salvors commenced hot-tapping operations to remove the
oil still laden onboard the sunken vessel<1>. By 19 September 2017, 1533.9 metres³ of oil had been removed and pumped into
a tanker (Lassea) moored alongside the crane barge. However, when the Lassea proceeded to Aspropyrgos anchorage for
discharge, it was found that oil had escaped into the double-bottom side ballast tanks, and the master and chief engineer of
the Lassea were arrested on suspicion of oil -smuggling, and held by the public prosecutor pending further investigation. The
tanker was not able to commence its discharge of the oil loaded from the sunken tankerwreck and further delay in the
discharge followed.

Clean-up operations continued at sea, and over time gathered decreasing amounts of oil at sea due to the oil breaking into
light sheens which proved difficult to recover. The salvors, having removed 2077 metres³ of oil from the wreck using direct
pumping and hot-tapping techniques, are is currently involved in sealing all the cargo tanks and leaks in order to pressurise
the tanks within the wreck, to force any trapped oil to the surface for collection.

Large quantities of booms (totalling approximately 9 kilometres), and sorbents have been used to either protect
uncontaminated areas or to control oil which had already stranded ashore. A large number of contracting personnel (at times
totalling up to 400 people) were used to clean up contaminated areas.

The 1992 Fund’s technical advisors have however advised the Greek authorities against a number of clean-up techniques
which have been adopted by some of the municipalities, specifically, the bulk removal of contaminated and uncontaminated
sand and debris from the beaches, which creates damage to the environment and large quantities of solid waste with the
attendant costs of disposal, rather than flushing the beach material in situ.

As at 17 October 2017, clean-up operations were continuing onshore and at sea, with the expectation that both operations
would be scaled down once the oil removal operations had been completed. A number of the beaches which were
contaminated have since been declared clean by the authorities following the clean-up operations.

On 29 September 2017, the Greek authorities issued a wreck removal order requiring the shipowner to lift the wreck within 30
days. To dateAs at October 2017, however, it is understood that no wreck removal contract has been signed.

<1> Hot-tapping involves drilling through the hull plating into the tank by a diver using a hydraulic drill, in order to attach a

sealing plate to which a pipe can then be attached. Through this pipe the oil in the cargo tanks can be pumped out to a
receiving vessel.

Applicability of the Conventions

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Applicability of the Conventions
Greece is a Party to the 1992 CLC and the 1992 Fund Convention.

Since the Agia Zoni II (1 597 GT) is below 5 000 units of tonnage, the limitation amount applicable under the 1992 CLC is SDR
4.51 million (€5.36 million) <2>. The vessel was insured with Lodestar Marine Limited, a UK-based fixed premium insurance
provider, but had no hull insurance. The insurance policy between the owner and fixed premium insurance provider contains a
limit of liability of €5 million, although the insurer has indicated that it will honour the blue card it issued, which has a limit of
SDR 4.51 million (€5.36 million).

The total amount available for compensation under the 1992 CLC and 1992 Fund Convention is SDR 203 million (€241.29
million)<2>.

Greece is also a Party to the Supplementary Fund Protocol. The total amount available under the Supplementary Fund
Protocol is SDR 750 million, including the amounts payable under the 1992 Civil Liability and Fund Conventions. It is, however,
very unlikely that the damages caused by the spill will exceed the limitation amount under the 1992 Fund Convention.

<2> Based on the exchange rate of 11 September 2017 of SDR 1 = €1.188630.

Investigation into the cause of the incident

The Central Port Authority of Piraeus has commenced an investigation into the cause of the sinking, the results of which are
awaited. The 1992 Fund has also requested its lawyers and surveyors to investigate the cause of the sinking.

Claims for compensation

A Claims Submission Office has been established in Piraeus to receive claims arising from the pollution damage caused by
the Agia Zoni II.

The office, which has been operational since 2 November 2017, is staffed by a Greek team and has been set up to ensure that
all compensation claims are processed in an efficient and timely manner. A local team of claims experts has been engaged,
and all relevant documentation will be provided in both English and Greek.

As at October 2017, no claims for compensation had been received, but a number of large claims were expected from the
clean-up contractors due to the extensive oiling of shoreline following the incident. Also, due to the populated areas which
were contaminated, it is anticipated that a number of tourism claims will be submitted. In addition environmental monitoring
and sampling claims may also be submitted.

Limitation proceedings
The insurer has indicated that it will honour the blue card which it issued and will establish a limitation fund. Pursuant to
Greek law, an Administrator has been appointed to handle any claims filed at the Limitation Court.

Civil proceedings
As at October 2017, no legal proceedings had been commenced.

Considerations
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Considerations
Very little information is available regarding the cause of the incident, pending the outcome of the port authority’s
investigations. This incident is a high-profile incident in Greece, given its location close to Piraeus, and was reported
extensively in the Greek and international press. Given the complexity of the spill and the profile of the incident, the Director
has established a Claims Submission Office in Greece, to assist with the handling of any claims that may arise.

Given the extent of contamination, the area impacted, and the clean-up operations that will be required to clean up the
contaminated areas, the Director believes that the shipowner’s limitation fund will be substantially exceeded, and the 1992
Fund will be called upon to pay compensation.

The Director is of the view, however, that the damage is unlikely to exceed the amount available under the 1992 Fund
Convention. From the information presently available, it therefore appears that the incident will not involve the Supplementary
Fund.

Since it appears that Lodestar Marine Limited will not provide interim payments to compensate victims, the 1992 Fund will
make payments of compensation in respect of losses arising out of the incident.

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