Trafigura and the Probo Koala
In 2006 Trafigura time chartered the Probo
Koala, a tanker, for the transportation of oil products. The vessel
carried out a procedure for caustic washing on several cargoes of
one such product, coker naphtha, and needed to discharge a
relatively small amount of residual waste (often referred to as
‘slops’). Coker naphtha is a commonly available and widely traded
product. The discharge and treatment of slops and waste
materials from all vessels, including crude oil and product
carriers, is an everyday occurrence around the world.
Trafigura appointed a licensed operator,
Amsterdam Port Services BV (APS), to handle the treatment of the
slops. After receiving the slops on their barge in
Amsterdam, APS increased its price for treatment of the slops by
3,000% without justification. Trafigura rejected APS’ offer
and departed Amsterdam for Paldiski, Estonia where it was due to
collect a cargo.
Subsequently at the port of Abidjan, in the
Ivory Coast, Trafigura appointed a contractor licensed to handle
the discharged slops. Abidjan is not a remote, third world
backwater as implied by some media reports: it is a major African
port and industrial city, the country is a major crude oil producer
and exporter, it has a refinery adjacent to the port and other
modern industrial facilities. In addition to the handling of wastes
from refining oil, slops have been discharged there without
incident many times before by international companies, including
oil majors. The Ivory Coast was also a MARPOL signatory and Abidjan
was explicitly registered to handle slops disposal. Trafigura had
absolutely no reason to believe that the operation in Abidjan would
be mishandled.
The discharge of slops to a nominated
contractor, Compagnie Tommy, was conducted in accordance with local
and international regulations, with the approval of the port
authorities and in the presence of both the police and customs
officials. Sadly, the contractor then dumped the slops illegally at
sites around the city. Trafigura could not have foreseen these
actions, which were in flagrant breach of both the operator’s
licence and Compagnie Tommy’s contractual undertakings to
Trafigura.
Residents from the district of Akouédo, just
outside central Abidjan, later complained of a terrible smell
(similar to rotten cabbages) coming from Abidjan’s principal
landfill site nearby. The odour was believed to have come from
chemicals in the slops. In due course it was alleged that,
among other things, the slops had contained hazardous materials
that caused serious and long term injuries to a large number of
residents from Akouédo and other locations around Abidjan.
Investigations and court cases into this
series of events have been conducted in the Ivory Coast, the UK and
the Netherlands.
Neither Trafigura nor Puma Energy Côte
D’Ivoire nor any of their staff were involved in the criminal
proceedings in the Ivory Coast; no indictments were brought against
any of them, not because of any legal technicalities but simply
because the Prosecutor declared that there was no evidence of any
illegality or misconduct by any Trafigura company or
staff.
Following the proceedings in the English
courts, it is now accepted, on the basis of the findings of 20
scientific experts, that the slops could at worst have caused ‘low
level flu-like symptoms and anxiety’.
Trafigura was extremely disappointed to be
subsequently convicted on two counts in the Netherlands with regard
only to the delivery of slops to, and its export from, Amsterdam.
The company is currently vigorously appealing the decision.
Owing to the nature of the subject, Trafigura
faced a barrage of stories and unfounded claims from the media,
many of which were highly inaccurate. While the wilder
statements were usually quickly withdrawn and followed by public
apologies – from, among others, the BBC, the UK’s The Times, The
Guardian and The Independent newspapers – the damage had been
done.
Mr Justice MacDuff, the judge presiding over
the group action subsequently brought against Trafigura by London
lawyers Leigh Day & Co, even commented: ‘I have been following
what has been happening in the media both in the newspapers and on
TV and radio. I have witnessed myself how wildly inaccurate some of
the statements have been’.
The Probo Koala affair is a very sad episode
in the history of Trafigura. The company was appalled and
seriously concerned by Compagnie Tommy’s dumping of the slops.
This was exacerbated as uninformed rumours circulated,
fear and alarm spread quickly among local communities, even long
after the contents of the slops had been analysed and proved not to
have been hazardous as alleged.
The moment Trafigura was informed of the
situation, the company did everything
possible to establish the true facts about the Probo Koala slops,
assist in the clean-up operation and offer support to the Ivory
Coast. Although the dumping was ultimately beyond its control,
Trafigura sincerely regrets that it occurred.
However, it is important that perspective is
maintained on the complex series of events before, during and after
the incident and Trafigura’s role in them – a side of the story
which is rarely reported.
Trafigura is frequently asked: what has it
done to ensure that an incident like this doesn’t happen again?
While Trafigura strenuously maintains that it
did nothing wrong and its staff acted in an appropriate manner
throughout, using industry standard practices, the Probo Koala
incident has undoubtedly been a catalyst for substantive and
ongoing reviews of the company’s operations.
At the present day Trafigura goes beyond what
others typically conduct by way of due diligence on contractors and
suppliers. The company has also developed standards that exceed the
legal requirements for the design, operation and maintenance of
vessels, terminals and facilities in the oil industry.
Trafigura firmly believes that its operating
procedures, infrastructure, equipment, facilities, vessels,
vehicles and railcars are not just equal to those of its
competitors: they are unequivocally better than most.
Trafigura contributes to regional and global
initiatives on material stewardship, product and waste management,
where its input as a global player is welcomed and respected.
The company intends to further develop that engagement.