The company that owns the ill-fated motor tanker Terranova has denied allegations it was involved in oil smuggling.

Shogun Ships Co. Inc. said it will cooperate fully with ongoing investigations into the incident that caused significant environmental damage and impacted the livelihood of fishermen in Bataan and neighboring provinces.

“The owners of the MTkr Terranova, categorically deny the allegations of smuggling and involvement in ‘paihi’ operations.

The MTKr Terranova is equipped with a comprehensive CCTV system as part of the company’s proactive measures to prevent oil loss. Since the commencement of its operations, there have been no records of oil loss claims or reports of abnormal losses filed against MTKR Terranova by any of its charterers,” said lawyer Leonell Mojal-Infante, spokesperson of Portavaga Ship Management Inc., the vessel’s management company.

“Shogun Ships Co. Inc. remains committed to upholding the highest standards of service and compliance in the Philippine oil transport sector. We will cooperate fully with all investigations relative to the sinking of the MTkr Terranova,” she added.

Justice Secretary Boying Remulla had raised the possibility the tanker was engaged in oil smuggling with other vessels while at sea.

“There are intelligence reports that the ‘paihi’ system was in effect. The other sunken vessel had no engine. They converted it into a tanker but it was just being towed,” he said.

The “paihi” happens when oil from a large vessel is transferred to smaller craft at sea to avoid paying taxes.

The MTkr Terranova sank off the coast of Limay, Bataan in the early hours of 25 July in rough seas caused by monsoon rains intensified by typhoon “Carina.”

The Philippine Coast Guard (PCG) maintained that it allowed the ill-fated ship to sail since there was no typhoon signal hoisted at the time.

Still, Remulla said the PCG will be investigated for its failure to monitor the ship’s movements.

DoJ to pursue accountability

In a separate interview, Justice Assistant Secretary and spokesperson Atty. Mico Clavano said the investigation is focused on assessing the seaworthiness of the Terranova and whether there was a conspiracy involved in the issuance of its license.

“We want to know if the vessel is refurbished. It might have been scrap metal and was only presented as new,” Clavano said. “We will wait for the final report of the PCG because it will be the basis to get a clear picture of the incident. Also, to determine who was negligent since there were thousands affected.”

The DoJ said it is committed to pursuing accountability for the recent capsizing of the three sea vessels.

Authorities currently estimate the damage to fisherfolk, marine, and aquatic resources at billions of pesos. The DoJ vowed to hold accountable not only the owners and crew of the sunken MT Terranova and the two other vessels but also the officials who approved their seaworthiness despite obvious red flags.

In addition to pursuing legal action, the DoJ will assist local government units in obtaining compensation for the affected fisherfolk and residents.

The DoJ has partnered with the provincial government of Cavite to engage with the owners and insurance agents of the sunken vessels.

Following standards

Mojal-Infante said the Terranova was dedicated to hauling industrial fuel oil (IFO) since 2003 exclusively through legitimate contracts with reputable oil firms in the Philippines.

“The vessel’s operations conform to all legal standards and are supported by the necessary permits, documentation, and clearances from appropriate maritime and port authorities,” the spokesperson said.

Further, she said the vessel had sailed in Luzon, the Visayas and Mindanao and had an exceptional track record of zero oil loss incidents. It had a reliable and efficient performance record because of its unique ability to navigate in shallow waters, she added.

“The MTkr Terranova carried approximately 195,000 MT black cargo in 2023 and this year-to-date,” she said.

Damage assessment

In a separate statement, the company said it was meeting with local government officials of Cavite, Bataan and Bulacan to assess the impact and cost of the oil spill, especially on families living in the coastal towns who depend on fishing — which is part of the claims assessment and process.

Cavite Gov. Jonvic Remulla assured that thousands of fisherfolk and other affected residents of Cavite will be compensated by the insurer.

The estimated daily cost of the losses has been pegged at P12 million. It has been 12 days since the oil spill severely impacted the livelihoods of the residents.

Governor Joet Garcia has declared a second state of calamity in Bataan due to the oil spill from the Terranova, the sinking of the MTkr Jason Bradley in Mariveles, and the grounding of the MV Mirola 1, all of which occurred within the same week.

Garcia said 17,000 fisherfolk were affected by the three incidents, comprising 10,174 families in Limay and 4,822 families in Mariveles.

Garcia issued the declaration to allow the provincial government to utilize additional funds to support the cleanup and assist the affected residents.

21 Luzon areas under state of calamity

Meanwhile, a state of calamity has been declared in 21 municipalities in Luzon due to the oil spill in Bataan following the sinking of the MT Terranova.

The latest report from the National Disaster Risk Reduction and Management Council said 12 of the towns were in Bataan, and nine in Cavite, namely, Kawit, Noveleta, Rosario, Tanza, Naic, Maragondon and Ternate, and Cavite City and Bacoor City.

As of Tuesday, a total of 25,145 fishermen in Cavite had been affected by the oil spill.

The Batangas Provincial Veterinary Office earlier identified five oil spill-affected areas: Lobo, Lian, Rosario, Calatagan and Lipa City.

Last Saturday, 3 August, the Bureau of Fisheries and Aquatic Resources launched an initial relief operation to aid all registered fishermen in Noveleta affected by the oil spill.

U.S., NOAA to the rescue

Also on Tuesday, eight United States Coast Guard (USCG) and National Oceanic and Atmospheric Administration (NOAA) personnel arrived at the incident command post in Lamao Port, Limay, Bataan.

The USCG and NOAA personnel provided technical assistance to the incident management team in the ongoing recovery operations.