• The FSO Safer oil tanker moored in the Red Sea, off the coast of the western Hodeidah province, Yemen. All photos: EPA
    The FSO Safer oil tanker moored in the Red Sea, off the coast of the western Hodeidah province, Yemen. All photos: EPA
  • A boat of the Houthis-held coast guard drives past the FSO Safer oil tanker
    A boat of the Houthis-held coast guard drives past the FSO Safer oil tanker
  • The transfer of 1.14 million barrels of oil from the 47-year-old FSO Safer supertanker will begin next week
    The transfer of 1.14 million barrels of oil from the 47-year-old FSO Safer supertanker will begin next week
  • The beleaguered FSO Safer has not undergone maintenance since Yemen's war broke out in 2015
    The beleaguered FSO Safer has not undergone maintenance since Yemen's war broke out in 2015
  • It was left abandoned off the Houthis-held port of Hodeidah in the Red Sea
    It was left abandoned off the Houthis-held port of Hodeidah in the Red Sea
  • The boat poses a serious risk to the environment due to the possibility of it breaking up or catching fire
    The boat poses a serious risk to the environment due to the possibility of it breaking up or catching fire
  • The UN-purchased vessel has sailed from Djibouti en route to the Safer site, the UN reported
    The UN-purchased vessel has sailed from Djibouti en route to the Safer site, the UN reported
  • An inspector examines the vessel
    An inspector examines the vessel
  • The FSO Safer oil tanker in the Red Sea
    The FSO Safer oil tanker in the Red Sea

FSO Safer oil spill avoided by crew who did 'everything humanly possible' to prevent it


Nada AlTaher
  • English
  • Arabic

A six-person skeleton crew on board the decaying FSO Safer stuck off the coast of Yemen since the civil war began in 2014 has done “everything humanly possible” to prevent an oil spill, an expert told The National.

The international community breathed a sigh of relief after the UN gained access to the tanker after nearly a decade of trying to assess its structural integrity, especially when it was found that the ship was in better condition than initially thought.

Part of that is because of the skeleton crew that has been keeping the ship intact, maritime law expert Ian Ralby said.

Mr Ralby has provided consulting services to the parties involved and is in touch with the people who have been keeping the ship in shape.

“There were a couple of near misses – one in April 2019 when part of the hosepipe system fell into the sea,” he said. “The Safer Exploration and Production Operations Company (Sepoc) team did a great job to make sure it didn't cause a catastrophic spill or land on the pipeline when they had to cut the hosepipe.

“They did another amazing job when on May 27, 2020, the pipes burst in the engine room and could've caused damage to the superstructure hull or caused part of the vessel to sink or anchor chains to break.”

Sepoc is a Yemen state-owned company that owned and operated the infrastructure for oil export.

Instances like these, Mr Ralby said, are why the crew should be praised, especially in light of the difficult conditions they have faced in recent years under the watchful eye of armed Houthi militants.

One of the most effective steps the crew took, Mr Ralby and a former high-level Sepoc employee told The National, came when the FSO Safer was converted from a single-hull to a double-hull ship in 2019.

“There was a threat of the oxidation of air compartments and accessibility between the hull and the oil. The crew pumped the oil from the exterior compartments of the ship and filled up the inner compartments, so that instead of 34 half-empty compartments, we had fully filled inner compartments,” Mr Ralby said.

These measures cut the risk of the hull being punctured by a landmine, for example, causing a leak.

Offloading oil plan a 'temporary measure'

The Nautica arrives to take 1.14 million barrels of crude oil from the FSO Safer. EPA
The Nautica arrives to take 1.14 million barrels of crude oil from the FSO Safer. EPA

Environmentalists may be celebrating the transfer of the Safer's one million barrels of oil to a vessel in better shape, but the plan still leaves much to be desired. The UN and Houthi group, the main two parties involved in the move, have yet to agree what will happen to the oil, meaning the vessel could stay floating off the coast of Yemen for years to come.

In 2014 a project to develop Ras Isa port, where the FSO Safer is moored, into an oil terminal was more than half complete. But when war between the government and Houthi rebels broke out, the project stopped in its tracks.

Ahmed Kulaib was general manager at Sepoc when the Houthis took over the capital Sanaa in 2014. Speaking to The National in June, Mr Kulaib said the more sensible plan would have been to complete that project and take the oil from the FSO Safer to the newly completed terminal, instead of replacing the Safer with the VLCC Nautica, which is about to begin a two-week ship-to-ship transfer of oil.

“The project was supposed to be handed over in November 2015, and was to be a replacement to the FSO Safer where import and export would take place,” Mr Kulaib added.

Mr Ralby said ideally that would have been the case, but in 2020, when the now ongoing UN plan was proposed, the circumstances in Yemen were different.

The Nautica is to begin a ship-to-ship transfer of oil. Reuters
The Nautica is to begin a ship-to-ship transfer of oil. Reuters

“The situation now is a lot less threatening than it was in 2020 and a lot of the contextual issues are a bit calmer,” he said. “Now, we don't have a pandemic, oil futures were negative and the Houthis were vying for control of Marib.”

The price of oil plunged in 2020 after the outbreak of Covid-19, reaching historic lows as the market suddenly became oversaturated.

Today, Yemen is in a relative state of calm after a UN-brokered ceasefire between the warring parties expired without a return to violence. Since then, there have been at least two rounds of prisoner exchanges between the Yemeni government, the Houthis and Saudi Arabia, which leads a coalition fighting against the rebels.

So in 2020, replacing the FSO Safer with a seaworthy tanker seemed like a viable option even if it is not the best option today, Mr Ralby said.

The National has contacted the local UN office and the UN Resident and Humanitarian Co-ordinator of Yemen's office for comment on an alternative plan and current progress on where the oil might end up.

“The UN is implementing its 2020 plan and does not have the follow-through planned out for how to get the oil off the water and resolve tensions,” Mr Ralby said.

Replacing the Safer with another tanker is therefore “a temporary measure, not a solution”, he said.

Results

3pm: Maiden Dh165,000 (Dirt) 1,400m, Winner: Lancienegaboulevard, Adrie de Vries (jockey), Fawzi Nass (trainer).

3.35pm: Maiden Dh165,000 (Turf) 1,600m, Winner: Al Mukhtar Star, Adrie de Vries, Fawzi Nass.

4.10pm: Handicap Dh165,000 (D) 2,000m, Winner: Gundogdu, Xavier Ziani, Salem bin Ghadayer.

4.45pm: Handicap Dh185,000 (T) 1,200m, Winner: Speedy Move, Sean Kirrane, Satish Seemar.

5.20pm: Handicap Dh185,000 (D) 1,600m, Winner: Moqarrar, Dane O’Neill, Erwan Charpy.

5.55pm: Handicap Dh175,000 (T) 1,800m, Winner: Dolman, Richard Mullen, Satish Seemar.

Sri Lanka's T20I squad

Thisara Perera (captain), Dilshan Munaweera, Danushka Gunathilaka, Sadeera Samarawickrama, Ashan Priyanjan, Mahela Udawatte, Dasun Shanaka, Sachith Pathirana, Vikum Sanjaya, Lahiru Gamage, Seekkuge Prasanna, Vishwa Fernando, Isuru Udana, Jeffrey Vandersay and Chathuranga de Silva.

The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
WHAT%20IS%20THE%20LICENSING%20PROCESS%20FOR%20VARA%3F
%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A

PFA Team of the Year: David de Gea, Kyle Walker, Jan Vertonghen, Nicolas Otamendi, Marcos Alonso, David Silva, Kevin De Bruyne, Christian Eriksen, Harry Kane, Mohamed Salah, Sergio Aguero

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Result

2.15pm: Maiden Dh75,000 1,950m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).

2.45pm: Handicap Dh80,000 1,800m; Winner: Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

3.15pm: Handicap Dh85,000 1,600m; Winner: Native Appeal, Adam McLean, Doug Watson.

3.45pm: Handicap Dh115,000 1,950m; Winner: Conclusion, Antonio Fresu, Musabah Al Muhairi.

4.15pm: Handicap Dh100,000 1,400m; Winner: Pilgrim’s Treasure, Tadhg O’Shea, Satish Seemar.

4.45pm: Maiden Dh75,000 1,400m; Winner: Sanad Libya, Richard Mullen, Satish Seemar.

5.15pm: Handicap Dh90,000 1,000m; Winner: Midlander, Richard Mullen, Satish Seemar

Abu Dhabi GP starting grid

1 Lewis Hamilton (Mercedes)

2 Valtteri Bottas (Mercedes)

3 Sebastian Vettel (Ferrari)

4 Kimi Raikkonen (Ferrari)

5 Daniel Ricciardo (Red Bull)

6 Max Verstappen (Red Bull)

7 Romain Grosjean (Haas)

8 Charles Leclerc (Sauber)

9 Esteban Ocon (Force India)

10 Nico Hulkenberg (Renault)

11 Carlos Sainz (Renault)

12 Marcus Ericsson (Sauber)

13 Kevin Magnussen (Haas)

14 Sergio Perez (Force India)

15 Fernando Alonso (McLaren)

16 Brendon Hartley (Toro Rosso)

17 Pierre Gasly (Toro Rosso)

18 Stoffe Vandoorne (McLaren)

19 Sergey Sirotkin (Williams)

20 Lance Stroll (Williams)

RESULT

Wolves 1 (Traore 67')

Tottenham 2 (Moura 8', Vertonghen 90 1')

Man of the Match: Adama Traore (Wolves)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Western Region Asia Cup T20 Qualifier

Sun Feb 23 – Thu Feb 27, Al Amerat, Oman

The two finalists advance to the Asia qualifier in Malaysia in August

 

Group A

Bahrain, Maldives, Oman, Qatar

 

Group B

UAE, Iran, Kuwait, Saudi Arabia

Updated: July 20, 2023, 3:37 AM