Economic Calendar

Monday, October 10, 2011

Bad Weather Hampers NZ Oil Spill Recovery

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By Elisabeth Behrmann - Oct 10, 2011 7:58 AM GMT+0700

Rain and strong winds are hampering recovery teams cleaning up an oil spill and slowing attempts to pump fuel from a container ship stranded on a reef off the northeastern coast of New Zealand.

The stricken vessel, which has 1,700 metric tons of fuel oil as well as potentially dangerous chemicals on board, ran aground Oct. 5 in the Bay of Plenty near Tauranga, 100 miles (160 kilometers) southeast of Auckland. About 10 metric tons of oil was pumped to a bunker barge alongside the ship before efforts were delayed by changing weather conditions, Maritime New Zealand said in a statement on its website.

New Zealand’s MetService is forecasting winds of 40 miles (65 kilometers) an hour, with rain and one-meter waves for areas including the Bay of Plenty today, with the likelihood of conditions worsening. New Zealand Prime Minister John Key, who yesterday flew over the ship in a helicopter, says reviews are underway to identify how the incident began.

“I want answers and I think we are entitled to those answers,” Key told Television New Zealand’s Breakfast. “Every year around the world there are ships that get into grief but not ones that plough into an extremely well documented reef in very calm waters at high speed as this one did.”

Investigations Under Way

Key said two investigations are under way into the incident, while costs are likely to be met by the ship’s insurers. “Other actions” could follow as a result of the inquiries, he said.

Some oil from the vessel began coming ashore at Mount Maunganui beach today, earlier than officials had expected, Television New Zealand reported. A film of thinly spread oil, known as sheen, has spread from the ship since it ran aground.

“The removal of fuel from the ship remains the top priority,” Maritime New Zealand National On-Scene Commander Rob Service said in a statement yesterday. “Our operations teams have done well to pull a lot of equipment for offshore use together very quickly.”

New Zealand has deployed 500 defense personnel and four naval vessels, as well as underwater and aerial assessment teams to prepare for the cleanup.

“Pollutants on board the vessel including paint, grease, hydraulic oils and lubricants are being hand carried off the vessel onto a small support vessel,” Service said yesterday.

There are 25 uninjured crew members on the 32-year-old, Liberian-flagged Rena and 2,171 containers, according to Maritime New Zealand. The cargo includes four containers of ferrosilicon, a solid substance that can be hazardous when in contact with water and can emit hydrogen, the agency said.

Australian Spill

New Zealand’s Green Party on Oct. 8 called on the government to release details of the ship’s entire cargo.

The salvage operation of the 236-meter (774-foot) vessel was making progress, with two vessels yesterday carrying out recovery operations near the ship.

The recovery team includes Australians who worked on the Montara oil spill in 2009 when an estimated 400 barrels of oil a day leaked into the Timor Sea off Australia’s northwestern coast between Aug. 21 and Nov. 3, making it the third-biggest spill in that nation’s history.

“In terms of the oil recovery side of this response, there are similarities between the two operations,” said Service, who also worked on the Montara oil spill.

Two of the ship’s holds have flooded and the ship is listing although it is stable, according to the Maritime New Zealand website. Fuel escaped from damaged pipes while tanks containing more oil are undamaged, according to the website.

Protect Shoreline

The stresses on the hull are within permissible limits and the vessel’s condition isn’t deteriorating, Costamare Inc., parent of the Rena’s registered owner, Daina Shipping Co., said in a statement Oct. 7. Costamare said it’s cooperating fully with local authorities.

Salvage and environmental experts have arrived in Tauranga and nearby islands and reefs to consider ways to protect the shoreline. About 14 teams are checking beaches for affected wildlife. Seven blue penguins and two shags covered in oil have been taken to a wildlife response center for treatment, Maritime New Zealand said.

More than 100 workers are involved in preparation to collect the oil, including specialist vessels, an oil boom and personnel and equipment from Australia, New Zealand Transport Minister Steven Joyce told reporters in Tauranga Oct. 7.

Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, has 89 containers of product destined for customers in Asia and the Middle East on the ship, the Auckland-based company has said.

To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net



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