Singapore-flagged palm oil tanker dumping oily waste in Malaysian waters reveals pollution law flaw

Although it is legally permissible, critics say the discharge of waste by palm oil vessels flushing out their tanks off the coast of Malaysia is an overlooked problem.

Theresa Asia palm oil vessel
The Theresa Asia, a palm oil vessel, was identified as having discharged oil waste into the ocean in May and June 2024 via Skytruth's Cerulean software. The software can link oil slicks to polluters. Image: marinetraffic.com

A ship found to have discharged waste palm oil into the South China Sea has reignited debate over whether international regulations on marine pollution are fit for purpose, as the act of releasing waste oil during routine cargo tank cleaning is regarded as “standard industry practice” with no legal repercussions. 

Long slicks of the vegetable oil were seen trailing from a Singapore-flagged vessel off the east coast of Malaysia in May and June. One of the slicks was 11 kilometres(km) long, another measured 7.9 km.

The slicks were flagged by Andrew Dixon, the manager of island resorts near Bintan, Indonesia, which have in the past been affected by bilge dumping, the illegal discharge of waste bunker fuel by ships, which is a particularly common problem in the South China Sea.

Dixon sighted the slicks while assessing the impact of the recent oil spill in Singapore using satellite imagery provided by Skytruth, a non-profit that recently launched a monitoring service that can link oil slicks to polluters.

While the oil spill that affected Singapore’s southern coast was not visible on Skytruth’s maps, the palm oil tanker’s waste discharge could clearly be seen, Dixon noted.

The ship was identified as Theresa Asia, formerly known as Bow Asia, which is owned by Wilmar International, the world’s largest palm oil company.

The palm oil industry is treating the ocean like a kitchen drain.

Andrew Dixon, director, Nikoi and Cempedak islands

The slicks were classified by Skytruth to be of “common severity” compared to other slicks – “not egregiously huge, but also not insignificant,” Skytruth told Eco-Business.

Oil slicks from a palm oil vessel sighted via satellite

Oil slicks from the Theresa Asia palm oil vessel can be seen as black lines and patches on the maps above. The map top left highlights the location of the slick in the centre, which occurred on 9 June. The map bottom left highlights the location of the slick on 4 May, far right. The slicks were identified by Skytruth’s Cerulean software, which can link oil slicks to polluters. Source: Skytruth

A spokesperson for Wilmar confirmed that the vessel was responsible for the slicks, which had been caused by routine cargo tank cleaning, a practice it said was in full compliance with the International Convention for the Prevention of Pollution from Ships, or MARPOL.

Annex II of MARPOL permits the discharge of noxious liquid substances in bulk under certain conditions, for instance it can only be done 12 nautical miles from land in water depths of more than 25 metres with vessels moving at a minimum speed of 7 knots.

“The cleaning of vessel cargo tanks after discharging cargo, particularly vegetable and palm oil at port, is standard industry practice to avoid tainting of contaminants prior to receiving the next cargo shipment,” a Wilmar spokesperson said.

The International Maritime Organisation, the shipping regulator, said it is the responsibility of parties to MARPOL to determine the legality of specific incidents according to national law.

The Malaysian Maritime Enforcement Agency, Malaysia’s coast guard, said it takes legal action against marine polluters, but did not comment specifically on potential action it might take against Theresa Asia for flushing waste palm oil into Malaysian waters.

Some jurisdictions have moved to ban the discharge of palm oil at sea, a practice which environmentalists say companies deploy to avoid the cost of proper disposal on land. Palm oil dumping was banned in European waters in 2021.

Palm oil dumping creates what is known as palm oil bergs, congealed Styrofoam-like clumps that wash ashore. Environmentalists suspect that large quantities of the oil could be hazardous to marine ecosystems, although the long-term effects are unknown.

Palm oil bergs litter a beach in Hong Kong in 2017. Image: Sea Shepherd

Palm oil bergs litter a beach in Hong Kong in 2017. Image: Sea Shepherd

Beaches in Hong Kong were closed when a tanker spilled 1,000 tonnes of palm oil after a collision in 2017. The issue made headlines again in 2018 and 2019 when palm oil washed up on the British coast. Palm oil company Golden Agri-Resources has commented on palm oil spills, saying that the oil is non-toxic and will be eaten by fish and other marine animals.

Dixon commented: “Using the ocean as a dumping ground for any sort of waste is ethically bankrupt. To make claims about operating a sustainable business and not disclosing this dumping is morally bankrupt. It amazes me that the palm oil industry treats the ocean like a kitchen drain.” 

“I believe the general public would be astonished that this happens in this day and age – and so routinely.”

Dixon noted that as the dumping of palm oil is banned in Europe, it is a matter of time before the authorities in Asia clamp down on the activity. “The smart operators will be those that care more for the environment and see value in acting in a more responsible manner that is in line with the claims they make in their sustainability reports,” he said.

Wilmar did not disclose its practice of releasing waste oil into the sea in its latest sustainability report, which was published earlier this month. The company said it did not include the practice as it was not determined to be a material issue, but it would deliberate on disclosing the issue in future. 

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