COST OF OIL SPILL CLEAN-UP OPERATION

Mr Low Thia Khiang asked the Minister for Communications (a) whether the total cost of the clean-up operation and other claims arising out of the oil spill caused by the collision of the oil tankers Orapin Global and Evoikos has been ascertained; and (b) how much of the cost can be claimed under the Civil Liability Convention 1969 and from other organisations.

Mr Mah Bow Tan: When the Evoikos oil spill occurred in October 1997, some industry estimates for oil spill compensation claims ran into the hundreds of millions of dollars. Fortunately, swift action by the Maritime and Port Authority (MPA) and other agencies averted an environmental and ecological disaster. Crucial facilities such as power stations and oil refineries functioned normally, and the beaches at Sentosa and East Coast were unaffected. As a result, potential compensation claims by Singapore authorities in respect of the resources mobilised to combat the pollution and measures taken to restore the environment have been greatly reduced. The claims will basically be for the clean-up costs. This is estimated to be within the limit which Singapore can claim under the Civil Liability Convention 1969. We are confident that the claims will be met in full.