The alleged owner of oil confiscated from a Capital Ship Management VLCC in February is accusing the US of overstepping its bounds in pushing for the seizure.

In court papers filed on Tuesday, Fujairah International Oil & Gas Corp (FIOGC) demanded proof for several US claims backing up its forfeiture order. The filing came after the company said in March it was the true owner of the oil aboard the 297,900-dwt Achilleas (built 2010), rather than Iran.

"Comity and principles of international law requires [United Arab Emirates] law to determine the ownership of, and rights to, the [oil] as the actions occurred in the territorial seas of the UAE," the company's lawyers said in the latest filing.

"Accordingly, based on principles of international comity and choice of law analysis, US forfeiture law is inapplicable insofar as it relates to [US] interest in the [oil]."

FIOGC is an oil trading and storage company backed by Fujairah's government and owned entirely by the emirate's ruler Sheikh Hamad bin Mohammed Al Sharqi.

The US said in court papers filed in February in the US federal court for Washington DC that the Achillea's cargo was Iranian in origin, not Iraqi as Evangelos Marinakis-controlled Capital initially believed.

Instead of completing the journey to China, it worked with the US government to bring the oil to Texas.

In its answer to the US, FIOGC demanded proof that its bill of lading, which stipulates the cargo was "Basrah Light crude oil" was fraudulent. The company said it had "received what appeared to be a bona fide and properly authenticated bill of lading for ... Iraqi-origin oil".

Location dispute

The US had also argued that the oil was transferred twice via ship-to-ship transfer and the operation that loaded the cargo aboard the Achilleas occurred in the Gulf of Oman, not the territorial waters of the UAE.

FIOGC also demanded the US provide proof of that allegation.

It requests the court dismiss the US seizure order and that the oil or proceeds from the sale of the oil be returned.

FIOGC is represented by Sean Pribyl and Christopher Nolan of Holland & Knight.

Evangelos Marinakis' Capital Ship Management worked with the US government to bring suspect oil to Texas instead of China. Photo: Kenny Hickey/TradeWinds Events

The seizure is part of a US effort to cut off Iran's oil exports, which began under former President Donald Trump and appears to be continuing under President Joe Biden.

Many expected Biden to thaw ties with Iran and attempt to re-implement a 2015 treaty to lift sanctions in exchange for Tehran limiting its nuclear programme.

That has not happened, with the US arguing Iran must return to compliance and Iran demanding sanctions be lifted before it does.

US news outlet Politico reported this week that the US plans to pitch a deal to Tehran that would see some sanctions lifted for the limiting of some nuclear activities as Iran continues to enrich uranium.

It is unclear if Iran would agree to any new deal, as officials from the country said the US can simply abide by the 2015 agreement, which Trump withdrew from in 2018.