BUNKER BULLETIN REF : 12/2003

DNV PETROLEUM SERVICES

09-Sep-2003
Alternative Contacts
DNVPS London
Tel : +44 207 3576080
Fax :+44 207 3576192

London@dnvps.com
Ms. Bjorg J. Williams
Direct : +44 2077166522
Mobile : +44 7789652266

DNVPS Rotterdam
Tel : +31 10 2922600
Fax : +31 10 4797141

IMO MARPOL Annex VI and the EU Sulphur Directive, DNVPS

Interpretation (Update: September 2003)
To : COLUMBIA SHIPMANAGEMENT LTD.
Attn: MR. E. BUCKNALL
CC : MR. U. KOERBER
CC : MR. V. SHIPILOV
CC : MR. U. PFEIFER
CC : MRS. M. LAMBROU

Rotterdam@dnvps.com
Mr. Bob van Ee
Direct : +31 10 2922644
Mobile : +31 6 10026421

DNVPS Oslo
Tel : +47 67 57 99 00
Fax : +47 67 57 93 93

dnvps.Oslo@dnv.com
Mr. Hans-Petter Berg
Direct : +47 67 578947

DNVPS New Jersey

Tel : +1 201 833 1990
Fax : +1 201 833 4559

Teaneck@dnvps.com
Mr.Martin Verle
Mobile : +1 201 3626383

DNVPS Singapore
Tel : +65 6 779 2475
Fax : +65 6 779 5636

Singapore@dnvps.com
Mr.Hushairi Bin Haiyon
Direct : + 65 68876100
Mobile : +65 96759088

DNVPS Fujairah
Tel : +971 9 2228152
Fax : +971 9 2228153

Fujairah@dnvps.com
Mr. Thomas Tampi
Mobile : +971 506492213

DNVPS Algeciras
Tel : +34 956 58 81 88
Fax: +34 956 58 77 75

Algvps@dnv.com
Mr. Fernando Vidal Sanchez
Mobile :+34 605888523

DNVPS Houston
Tel : +1 281 470 1030
Fax : +1 281 470 1035

Houston@dnvps.com
Mr. Alfred Barry
Mobile : + 1 2102746181

DNVPS HomePage

The International Maritime Organisation (IMO) at a global level, and

the European Union (EU) at a regional level, have established
regulatory regimes limiting the Sulphur (S) content of Marine Fuels.
The current global regulation is Annex VI of MARPOL 73/78
adopted on 26 September 1997, while the EU Directive
1999/32/EC is a regional regulation adopted on 26 April 1999.
Annex VI is not enforced yet; however, its ratification is expected in
the foreseeable future.
Current Situation
----------------------Annex VI is valid for international and territorial waters and requires
a global cap of 4.5% m/m on the S content in fuels as well as a
maximum permitted SOx emission level in so-called SOx Emission
Control Areas or SECAs. To date, the Baltic Sea, the North Sea
and the English Channel have been designated by IMO as SECAs.
The S content of fuels used in these areas shall not exceed 1.5 %,
except where the vessel is equipped with an approved aftertreatment exhaust gas cleaning system or any other technological
method that is verifiable and enforceable to limit SOx emissions to
6.0 g SOx/kWh.
Annex VI will become effective 12 months after ratification by at
least 15 flag states covering at least 50% of the world gross
tonnage. Currently, 11 countries representing 53.84% of the world's
merchant tonnage are signatories to Annex VI. They are the
Bahamas, Bangladesh, Denmark, Germany, Greece, Liberia, the
Marshall Islands, Norway, Panama, Singapore and Sweden. Four
more countries will be needed for ratification.
The EU Directive 1999/32/EC aims at lowering the S limit of certain
liquid fuels. As part of this Directive, Marine Gas Oil (MGO) and
Marine Diesel Oil (MDO) fuel, covering all 'DM' distillates according
to Table 1 of ISO 8217:1996, shall not be used by ships if their S
content exceeds 0.2 % from 01 July 2000. This Directive implies
that MGO and MDO with S content exceeding the 0.2 % limit are
not allowed to be used in EU territorial waters (i.e. 12 mile zone).
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BUNKER BULLETIN REF : 12/2003

DNV PETROLEUM SERVICES
09-Sep-2003
Alternative Contacts
DNVPS London
Tel : +44 207 3576080
Fax :+44 207 3576192

London@dnvps.com
Ms. Bjorg J. Williams
Direct : +44 2077166522
Mobile : +44 7789652266

DNVPS Rotterdam
Tel : +31 10 2922600
Fax : +31 10 4797141

Rotterdam@dnvps.com
Mr. Bob van Ee
Direct : +31 10 2922644
Mobile : +31 6 10026421

DNVPS Oslo
Tel : +47 67 57 99 00
Fax : +47 67 57 93 93

dnvps.Oslo@dnv.com
Mr. Hans-Petter Berg
Direct : +47 67 578947

DNVPS New Jersey

Tel : +1 201 833 1990
Fax : +1 201 833 4559

Teaneck@dnvps.com
Mr.Martin Verle
Mobile : +1 201 3626383

DNVPS Singapore
Tel : +65 6 779 2475
Fax : +65 6 779 5636

Singapore@dnvps.com
Mr.Hushairi Bin Haiyon
Direct : + 65 68876100
Mobile : +65 96759088

DNVPS Fujairah
Tel : +971 9 2228152
Fax : +971 9 2228153

Fujairah@dnvps.com
Mr. Thomas Tampi
Mobile : +971 506492213

DNVPS Algeciras
Tel : +34 956 58 81 88
Fax: +34 956 58 77 75

Algvps@dnv.com
Mr. Fernando Vidal Sanchez
Mobile :+34 605888523

DNVPS Houston
Tel : +1 281 470 1030
Fax : +1 281 470 1035

Houston@dnvps.com
Mr. Alfred Barry
Mobile : + 1 2102746181

DNVPS HomePage

The use of low sulphur MGO/MDO is not applicable to vessels

entering the EU from a destination outside the EU. When leaving
an EU port, regardless of the vessel's destination, the use of low S
MGO/MDO is required within the EU (12 mile) territorial waters.
An important issue is that the fuel buying party has the
responsibility of ordering the correct grades. Note that Belgium has
not only restricted the use of high Sulphur MGO/ MDO, but has
also forbidden the sale of these grades, vide Royal Decree, 07
March 2003.
EU has approved a further reduction of MGO S to 0.1 %. This will
enter into force by 01 January 2008.
The situation in the Netherlands
------------------------------------------The competent authority in the Netherlands for implementation and
enforcement of this EU Directive is the Ministry of Housing, Spatial
Planning and the Environment. The Environmental Inspection Unit
of this Ministry is responsible for the execution of obtaining samples
"onboard" for S analysis and consequently for starting official
prosecution based upon evidence from analysed samples
exceeding the allowable S content. Please note that vessels
leaving the Port of Antwerp, Belgium, will have to pass Dutch
territorial waters in the Western Schelde. A number of vessels
crossing the Belgium/Dutch territory have been/are sampled by the
Dutch Environmental Inspection Unit and in some cases the
MGO/MDO in use have been found to exceed the S content of 0.2
%. Thus far, this has resulted in at least one documented case of a
5,000 fine.
Proposal to amend Directive 1999/32/EC
------------------------------------------------------On 01 August 2003, after the first reading in the European
Parliament (EP), the European Commission (EC) has adopted
COM (2003) 476, an amended version of its marine fuel sulphur
proposal, which will now be submitted for consideration by the
Council of Ministers. Before going to the second reading in the EP,
the original marine fuel sulphur proposal - COM (2002) 595 Vol II as well as COM (2003) 476, are both subject to further political
negotiations with the EP and the Council of Ministers under the "codecision" procedure.
According to this amended version of the proposal, the use of fuel
not exceeding the 0.2 % S will be required for any vessels at berth
in EU ports and for all inland waterway vessels. In practice, this
means the use of low S MGO for sea vessels at berth. Due to the
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BUNKER BULLETIN REF : 12/2003

DNV PETROLEUM SERVICES
09-Sep-2003
Alternative Contacts
DNVPS London
Tel : +44 207 3576080
Fax :+44 207 3576192

London@dnvps.com
Ms. Bjorg J. Williams
Direct : +44 2077166522
Mobile : +44 7789652266

DNVPS Rotterdam
Tel : +31 10 2922600
Fax : +31 10 4797141

Rotterdam@dnvps.com
Mr. Bob van Ee
Direct : +31 10 2922644
Mobile : +31 6 10026421

DNVPS Oslo
Tel : +47 67 57 99 00
Fax : +47 67 57 93 93

dnvps.Oslo@dnv.com
Mr. Hans-Petter Berg
Direct : +47 67 578947

DNVPS New Jersey

Tel : +1 201 833 1990
Fax : +1 201 833 4559

Teaneck@dnvps.com
Mr.Martin Verle
Mobile : +1 201 3626383

DNVPS Singapore
Tel : +65 6 779 2475
Fax : +65 6 779 5636

Singapore@dnvps.com
Mr.Hushairi Bin Haiyon
Direct : + 65 68876100
Mobile : +65 96759088

DNVPS Fujairah
Tel : +971 9 2228152
Fax : +971 9 2228153

Fujairah@dnvps.com
Mr. Thomas Tampi
Mobile : +971 506492213

DNVPS Algeciras
Tel : +34 956 58 81 88
Fax: +34 956 58 77 75

Algvps@dnv.com
Mr. Fernando Vidal Sanchez
Mobile :+34 605888523

DNVPS Houston
Tel : +1 281 470 1030
Fax : +1 281 470 1035

Houston@dnvps.com
Mr. Alfred Barry
Mobile : + 1 2102746181

DNVPS HomePage

safety concerns of switching to low viscosity MGO in older tanker

boilers, this shall not apply to fuels used in the boilers of tankers.
For these tankers a transition period until 2008 is granted.
DMB and DMC grades have, under the current EU Directive for use
in the EU, an S limit of 0.2%. It is proposed to raise this limit to 1.5
%. DMX/DMA grades however remain at 0.2 %.
With respect to Heavy Fuel Oil (HFO), the new EU proposal is in
line with the SECA regime of Annex VI, i.e. an S limit of 1.5 %. This
will become mandatory in the designated areas of the Baltic Sea,
the North Sea and the English Channel for all marine fuels.
The EU aim for implementation of these proposals is 01 January
2005 but the official statement is as follows: "With respect to the 0.2
% at berth limit -- 6 months after entry into force of this directive;
with respect to the 1.5 % SECA limit -- 6 months after entry into
force of this directive or 12 months after the date of entry into force
of MARPOL Annex VI, whichever is the earlier".
Next to the above mentioned, the EC proposes to set the same
maximum of 1.5 % S for all HFO used by passenger vessels on
regular services to and from any EU port, regardless of the area
(i.e. including Mediterranean Sea, Irish Sea, East Atlantic, Black
Sea, etc.). Implementation is from 01 July 2007 and applicable to
vessels of all flags.
DNVPS Rotterdam will be in regular communication with the Port of
Rotterdam Authority and the Dutch Ministry regarding the EU
Directive on low sulphur fuels. We will keep you duly informed
about any new developments.
Summary of EU Directive 1999/32/EC
--------------------------------------------------Current Situation
* The 0.2 % S limit is applicable to MGO/MDO in the EU
territorial (12 mile zone) waters, except when the vessel
enters the EU from a destination outside the EU.
* So far HFO is exempted from the Directive.
Future Eurolateral scenario
* In SECAs fuel sulphur content shall not exceed 1.5 %, in
conformance with MARPOL Annex VI.
* At berth, the S content of the fuel in use shall not exceed
0.2 %, i.e. MGO fuel.
* A 1.5 % S limit is applicable to passenger vessels on
regular services to/from any EU port.
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BUNKER BULLETIN REF : 12/2003

DNV PETROLEUM SERVICES
09-Sep-2003
Alternative Contacts
DNVPS London
Tel : +44 207 3576080
Fax :+44 207 3576192

London@dnvps.com
Ms. Bjorg J. Williams
Direct : +44 2077166522
Mobile : +44 7789652266

Best Regards,
Ferry van Eykel
Regional Manager
DNV Petroleum Services, Rotterdam
Mobile No. : +31 6538 27626
ferry.van.eykel@dnvps.com

DNVPS Rotterdam
Tel : +31 10 2922600
Fax : +31 10 4797141

Rotterdam@dnvps.com
Mr. Bob van Ee
Direct : +31 10 2922644
Mobile : +31 6 10026421

DNVPS Oslo
Tel : +47 67 57 99 00
Fax : +47 67 57 93 93

dnvps.Oslo@dnv.com
Mr. Hans-Petter Berg
Direct : +47 67 578947

DNVPS New Jersey

Tel : +1 201 833 1990
Fax : +1 201 833 4559

Teaneck@dnvps.com
Mr.Martin Verle
Mobile : +1 201 3626383

DNVPS Singapore
Tel : +65 6 779 2475
Fax : +65 6 779 5636

Singapore@dnvps.com
Mr.Hushairi Bin Haiyon
Direct : + 65 68876100
Mobile : +65 96759088

DNVPS Fujairah
Tel : +971 9 2228152
Fax : +971 9 2228153

Fujairah@dnvps.com
Mr. Thomas Tampi
Mobile : +971 506492213

DNVPS Algeciras
Tel : +34 956 58 81 88
Fax: +34 956 58 77 75

Algvps@dnv.com
Mr. Fernando Vidal Sanchez
Mobile :+34 605888523

DNVPS Houston
Tel : +1 281 470 1030
Fax : +1 281 470 1035

Houston@dnvps.com
Mr. Alfred Barry
Mobile : + 1 2102746181

DNVPS HomePage

Page 4 of 4