O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

interests and which are incorporated in Saint Vincent and the Grenadines, will fly the Saint Vincent and the
Grenadines flag.
Singapore Merchant Shipping Act (“MSA”)
Singapore registered vessels have to comply with the various requirements set out in the Merchant
Shipping Act. Such requirements include, among others:
(a) the number and standard of competence of officers and seamen operating and manning our
vessels;
(b) crew agreements, engagement and discharge of seamen;
(c) installation of safety equipment onboard vessels; and
(d) surveys and inspections to be undertaken on vessels.
Singapore Prevention of Pollution of the Sea Act (“PPSA”)
Under Part III of the PPSA, among other offences, the master, the owner and the agent of the ship shall
each be guilty of an offence if: (i) any disposal of discharge of refuse, garbage, waste matter, trade effluent,
plastics or marine pollutant in packaged form occurs from any ship into Singapore waters; (ii) any discharge
of oil or oily mixture occurs from a Singapore ship into any part of the sea or from any ship into Singapore
waters, being a substance or mixture carried as cargo or part cargo in bulk, occurs from a Singapore ship into
the sea or from any ship into Singapore waters; or (iii) any discharge of a noxious liquid substance, or of a
mixture containing a noxious liquid substance, being a substance or mixture carried as cargo or part cargo in
bulk, occurs from a Singapore ship into the sea or from any ship into Singapore waters. The penalties for
these offences differ and the party convicted may be liable for a fine or imprisonment or both. The master, the
owner of the ship and the agent may each be guilty of the offence and individually liable for the specified
penalty. Further, Section 17 and Section 18 of the PPSA provide that the owner of the ship found to have
discharged any of the above-mentioned substances shall be liable for the costs of removing the same and for
preventing or reducing any damage caused in Singapore which results from such discharge.
It is not however, an offence, if discharge is necessary (a) for the purpose of securing the safety of a ship
or saving life at sea, or (b) in consequence of damage, other than intentional damage, to the ship or its
equipment and all reasonable precautions were taken after the occurrence of the damage or the discovery of
the discharge for the purpose of preventing or minimising the escape of the matter or substances described in
the preceding paragraph; or (c) in the case of (ii) and (iii) in the preceding paragraph, if the discharge was for
the purpose of combating specific pollution incidents in order to minimise the damage from pollution and was
approved by the appointed authority, and, where the discharge occurred in the jurisdiction of the government
of a country other than Singapore, by that government.
Singapore Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act (“CLCA”)
The CLCA gives effect to the International Convention on Civil Liability for Oil Pollution Damage 1992
(“the CLC”) and to the International Convention on the Establishment of an International Fund for Compensation
for Oil Pollution Damage 1992.
The CLCA provides that owners of vessels which cause damage in the territory of Singapore by
contamination resulting from the discharge or escape of oil shall be liable for such damage, the cost of any
measures taken after such discharge or escape for the purpose of preventing or reducing such damage and for
damage caused in the territory of Singapore by the measures so taken. The CLCA also provides for the
limitation of liability for damage caused by the discharge or escape of oil and for the availability of an
international fund for compensation to the person suffering the damage caused. Such international fund is
contributed to by importers as well as receivers of oil.
International Conventions
The ownership, operation and/or management of ships are highly regulated, and are subject to
international conventions, national, state and local laws and regulations in force in the countries in which our
vessels may operate or are registered, as well as other applicable codes, guidelines and standards recommended
by the International Maritime Organization (“IMO”), the flag state governments, classification societies and
maritime industry organisations. Under our charter agreements in relation to the vessels, the operators of the
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