1. Ship To Ship Transfer Operations
Introduction:
STS transfer operations (STS) are becoming more and more popular around the world. It is
now being carried out in the US coasts, UK, Baltic, North-West Europe, West Asia, South-East
Asia, Greater China area, Mediterranean, Black Sea, Caribbean Islands, South America and
Africa. Alongside the major oil companies, the emergence of the trading houses like VITOL,
Glencore, Morgan Stanley and Trafigura has further contributed to this trend. The rationale is
that it requires minimum manpower and infrastructure; besides being flexible and cheaper.
One could imagine it as being a mobile terminal whose position could be shifted depending on
the season or market conditions. This can potentially increase the volume of oil traffic and
associated revenue growth in a cost-effective manner.
A few other reasons for its existence could be:
1. Saving on port dues and creating maximum flexibility for some charterers to carry out
operations outside area of jurisdictions where international standards may not be strictly
enforced. This encourages sub-standard tonnage at lower charter rates to be used.
2. Acting as storage tankers carrying strategic reserves due to insufficient holding capacity
ashore.
3. Strategic STS locations along the main international sea routes used by speculative traders.
This could assist in cushioning the market fluctuations and to trade cargo when the prices
are favourable.
4. Restricted use of larger sized vessels (used to reduce the unit freight cost), due to new
trading patterns. For example, increased STS within Europe is due to the increase in
Russian oil exports from the Baltic and the need for cargo transfers from small shuttle
tankers to VLCCs, which are too large to enter the Baltic. On the other hand, ports in
developing countries may not have suitable infrastructure and draft availability to handle a
VLCC or a VLGC. For such ports, the cargo could be first brought to an STS area and then
lightered. This would still work out cheaper than if it had to be brought on to smaller
vessels directly.
The consequences have been that it is under increased scrutiny due to general public
awareness of environmental issues. One of the major concerns is that, at present, there is no
uniform worldwide regulatory regime to enable a strategic risk assessment to be carried out in
the same way as ship-to-shore operations. Anticipating more focus on STS in the future,
research is ongoing into creating safer computerised Decision Support Systems for new ways
of carrying out STS including tandem configurations. Most recently, Repsol and Excelerate LLC
successfully completed the world’s second commercial STS transfer and re-gasification of LNG
in Argentina.
The challenges for xxxxxxx:
We are all aware that a STS transfer entails multiple high risk operations like approach
manoeuvre, moorings, hose connection and cargo transfer while anchored or underway.
Recognising this, most major charterers in the developed world will contract STS service
providers for a complete solution from providing mooring master to fenders/hoses.
Experienced Mooring Masters can be invaluable as he can advise on local practices and
weather conditions. However the same cannot be true for certain areas like West Africa, South
America or Indonesia where, firstly the service provider is not available and secondly if

2. available, does not provide a good service. Inexperienced port pilots doubling up as STS
mooring master can make the situation even worse. Therefore while appreciating that not all
officers will be STS experienced, they will still need to be familiar with the OCIMF STS
guidelines, local weather conditions and practices. Knowing your own vessel and carrying out
regular STS drills is very essential for conducting a safe and efficient STS operation.
We have, since 2007, had an incredibly high number of STS incidents, the most notable being
in West Africa, South America and Indonesia. A few examples are mentioned below:
1. Collision with own vessel due to poor manoeuvring from daughter vessel. In the most
recent case, a vessel owned by an oil major collided and completely damaged own
vessel’s stbd side in manifold area.
2. Collision of bridge wings on similar size vessels which were rolling.
3. Mooring damage on daughter vessel due to sub standard and poorly maintained
equipment.
4. Large dent on own ship parallel body during casting off in spite of tug assistance and
secondary fenders. In another case, own vessel landed up with a damaged fresh water
tank.
5. Gaping hole in daughter vessel after being struck by the assisting tug during
unmooring.
6. Oil spill from ruptured poor condition hose during bunkering in Indonesia.
Root causes could be put down to:
1. Use of sub-standard and poorly maintained old vessels by charterers.
2. Poor seamanship / ship handling by mooring master / daughter vessel.
3. Lack of adequate risk management from xxxxxx and the vessel.
4. Lack of training for own crew.
Managing the Risk from STS operations:
It may be argued that we should avoid sending vessels
to areas with poor standards so that unnecessary risks
are avoided. However, the reality is that we will see
more and more STS operations in the future.
Remember that xxxxx is a business and it can grow
only with new opportunities. We must collectively
support its objectives and take responsibility

3. for managing the challenges that the new business will bring along with it. Good Risk
Management is about protecting our people and reducing incidents while not necessarily
reducing the window of new business opportunities that may exist around the world.
Recognising that Risk Management is not about eliminating risk but rather bringing it down to
‘ALARP’ (As Low As Reasonably Practicable); we have found new ways of managing our risks
in corporation with xxxxxxxxxx. All daughter vessels are put up for screening by Vetting and in
fact a significant number is rejected if they do not meet our stringent vetting criteria which
include requirements on age, hull, class, flag, inspections and accident history. Thereafter
xxxxxx in consultation with the fleet group identify proper risk mitigation measures like
provision of tugs, quality equipment, mooring master etc. The newly introduced STS
questionnaire is provided by charterers and the information is reviewed by xxxxxx and in the
future, our Masters. Therefore sub-standard tonnage will be ruled out to the maximum extent
possible through a two stage process.
It is important to highlight here that the whole process is carried out in corporation between
xxxxxxx and the vessel. The Master remains, at all times, responsible for the safety of his
own ship, crew and cargo. The master shall always have the final say on the appropriate
level of quantity and quality of lightering equipment / off-take vessel.
Conclusion:
As can be expected from any new initiative, there have been some concerns from our
customers regarding the stringent requirements. However, the situation is fast improving
and we now see better tonnage being made available to us in West Africa and the charterers
in Indonesia are showing a keen interest in talking to xxxxx to improve the standards. There
is certainly a big scope for improvement in terms of crew training and provision of good STS
service providers. This will be the next big challenge for us.
Such initiatives will bring us real benefits in terms of lesser accidents and lesser stress for our
shipboard and shore staff alike. In the bigger picture, this will give us an opportunity to
position xxxxxx as the leading operator responsible for creating a paradigm shift in STS
operations conducted in developing countries.
Sachin Matwankar