Singapore’s worst oil spill in more than a decade is likely to trigger payouts from the intergovernmental body that compensates victims of pollution damage from high-cost tanker casualties.

The 29,900-gt Dutch-flagged dredger Vox Maxima (built 2009) struck the 8,700-dwt bunker tanker Marine Honour (built 2007) at the Pasir Panjang shipping terminal on 14 June, causing marine fuel to spill into port waters.

Popular beaches on the resort island of Sentosa were fouled with fuel oil in the days after the spill from the Singapore-flagged bunker tanker.

Other beaches and a coastal nature reserve were also affected.

The International Oil Pollution Compensation Funds (IOPC Funds) said the spill was likely to result in compensation claims for pollution damage exceeding the liability of Straits Bunkering, owner of the Marine Honour.

In such cases, the IOPC Funds steps in. It said it has agreed with the Marine Honour’s insurer, QBE, to set up a joint office for compensation claims.

Under international agreements, liability remains with the vessel that spilled the oil, regardless of fault.

A senior official from IOPC Funds travelled to Singapore in the days after the collision for meetings with government officials and QBE.

Further meetings were held in London, headquarters of IOPC Funds. Singapore is one of the 121 member states that is eligible for compensation from the funds.

Gaute Sivertsen is director of IOPC Funds Photo: IOPC Funds

“This strong cooperation and regular engagement between all the key stakeholders will be highly beneficial to the successful handling of this incident over the coming months,” said IOPC Funds.

The Vox Maxima, operated by Van Oord Ship Management of the Netherlands, is said to have suffered a sudden loss in engine and steering control before the incident.

It was subsequently found to have 13 deficiencies in a port state control inspection, including three relating to fire safety, life-saving appliances and international safety management that were serious enough for its detention.

IOPC Funds has been involved in 150 incidents since 1978 and paid out $992m for major casualties including the sinking of the 82,100-dwt Prestige (built 1976) that spilled thousands of barrels of oil onto Spain’s north-west coast in 2002.