Vulnerabilities faced by stakeholders in the energy sector in Southeast Asia
Indonesia BAKAMLA patrol intercepts dark fleet operations in the Natuna Sea (Source: BAKAMLA)
28 June 2024
From the consequences generated by the dark fleet to geopolitics and protection of marine resources, the energy sector faces a variety of vulnerabilities in the area.
By Thomas Timlen, Analyst
Piracy statistics by themselves can lead stakeholders in the energy sector to conclude that their assets in Southeast Asia face few threats. Judging solely on such statistics, it would appear that vessels related to the energy sector, whether VLCCs, OSVs or stationary platforms, are rarely impacted by significant threats. Hijackings of tankers have not been recorded for several years, with the comparatively less significant armed robberies involving ships plying the Singapore Strait dominating the most recent analysis.
Yet vulnerabilities are present in varying forms that are cause for concern. Activities of the dark fleet alongside geopolitical developments present consequences that, in some cases, can have significant impacts, both in terms of safety as well as from a commercial standpoint.
For years a dark fleet of assorted vessels, primarily small tankers but also fishing vessels and tugs, have conducted illegal activities throughout the waters of Southeast Asia. These activities have involved the sale, purchase and storage of fuel as well as the collection of waste water. The regular arrests of persons operating these ships attests to the robust black market.
Large tankers trading in sanctioned oil cargoes have been active in Asia. Ship-to-ship cargo transfers at sea have threatened the marine environment and have attracted the attention of law enforcement in Malaysian and Indonesian waters in particular.
While this creates obvious consequences for the owners and operators of the involved tankers, as well as the respective crew, companies with no involvement can also face unwanted consequences. This can be the result when the operators of dark fleet vessels fraudulently broadcast the names and particulars of innocent ships in order to conceal their activities, and set law enforcement agencies in pursuit of innocent ships. Moreover, as a result of such practices innocent vessels can become listed as sanction violators, with consequential difficulties on the market, through no fault of their own.
Geopolitical disputes as seen in the South China Sea for the most part generate vulnerabilities for navies and coast guards of the countries with conflicting claims, with no significant consequences to date for cargo ships. The exception in the energy sector involves seabed surveys, in which equipment in tow has been damaged and operational delays have resulted. Although recent altercations between Chinese and Philippines personnel have drawn steady media attention, these are not expected to impact the freedom of navigation in the South China Sea or the wider region for commercial shipping in the foreseeable future.
Maritime stakeholders can keep abreast of related developments 24/7 by referring to the regularly updated Threat Assessments available from the Risk Intelligence system.
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