Indonesia Puts Sanctioned VLCC Up for Auction
Indonesia is moving ahead with an auction of the 28-year-old Arman 114 Very Large Crude Carrier (VLCC), along with its cargo of nearly 167,000 tonnes of light crude oil as a single lot. The auction, scheduled for December 2, carries a reserve price of about $70 million. Bidders must deposit approximately $7 million to qualify.
The Arman 114 was built in 1997 and has a deadweight tonnage of 300,579. In July 2023, the vessel was detained by Indonesia‘s coast guard after it intercepted the ship while conducting an illegal ship-to-ship (STS) transfer with another tanker. The vessel allegedly switched off its Automatic Identification System (AIS) and caused an oil spill.
Vessel’s History and Confiscation
In July 2024, a local court found the vessel’s master guilty of pollution and illegal STS transfer. As a result, the Arman 114 and its crude cargo were subsequently confiscated as state assets by Indonesian authorities.
The winning bidder will assume responsibility for maintenance, security, and relocation – the vessel must be moved within 30 days of purchase. Shipbrokers have estimated the price of the tanker to be around $16 million.
Auction Details
The auction is scheduled to take place on December 2, with a reserve price of approximately $70 million. Bidders will need to deposit around $7 million to qualify for the auction. The winning bidder will receive the Arman 114 and its cargo of nearly 167,000 tonnes of light crude oil as a single lot.
The Indonesian government’s decision to put the vessel up for auction comes after it was detained by the coast guard in July 2023 for conducting an illegal STS transfer and causing an oil spill. The country is looking to dispose of the vessel and its cargo in a transparent and competitive manner, ensuring that the highest bidder secures the prize.
The auction presents an opportunity for shipowners and traders to acquire a large-capacity tanker at a potentially discounted price. However, the vessel’s age and condition may impact its value, making it a riskier investment for some buyers.
Original Article: Indonesia puts sanctioned VLCC and its crude up for auction — Splash247