PEGASUS OIL SHIPPING INC. PISCES OIL SHIPPING INC. POLLUX OIL SHIPPING INC. INTERNATIONAL TENDER PROCESS DOCUMENTATION MARINE INSURANCE

Transcription

1 PEGASUS OIL SHIPPING INC. PISCES OIL SHIPPING INC. POLLUX OIL SHIPPING INC. INTERNATIONAL TENDER PROCESS DOCUMENTATION MARINE INSURANCE 1

2 1. LETTER OF INVITATION The companies Pegasus Oil Shipping Inc, Pisces Oil Shipping Inc and Pollux Oil Shipping Inc, hereinafter named The Companies, invite international brokers based in London United Kingdom to participate in the international tender process to offer premium rates for the marine insurance for the following vessels: VESSEL YEAR FLAG OWNER M/T PICHINCHA 2009 Panama M/T ZARUMA 2009 Panama M/T AZTEC 2003 Panama Pisces Oil Shipping Inc Pollux Oil Shipping Inc Pegasus Oil Shipping Inc IMO NUMBER GROSS TONNAGE , , ,085 DEAD WEIGHT 105,093.2 metric tons 105,073.3 metric tons 68,439 metric tons REQUIRED INSURANCES 1. Hull & Machinery 2. Increased Value 3. War Risks 1. Hull & Machinery 2. Increased Value 3. War Risks 1. Hull & Machinery 2. Increased Value 3. War Risks 4. Loss of Hire The above vessels are operated by the state company FLOTA PETROLERA ECUATORIANA -FLOPEC-, shareholder in a 100% of the ship owner companies. The insurance policy will be awarded to the single participant that has strictly complied with the terms and conditions required in this tender. The Companies reserve the right to discretionally declare the tender process failed at any moment. In that case, the participant is not entitled to claim any compensation from The Companies. The tender process documentation is available at the following web site address: The bid must be submitted via to pollux@flopec.com.ec by September 15 th 2010 no later than 17:00 (local time of Ecuador). Offers submitted after the indicated date and time will be automatically rejected. Sincerely, Mr. EDUARDO CEVALLOS S. ON BEHALF OF PEGASUS, PISCES AND POLLUX OIL SHIPPING INC 2

3 2. INSTRUCTIONS TO BIDDERS Obligations of the participant.- The participant must look over with utmost care the insurance terms and conditions contained in this documentation and the lack of understanding of it does not relieve him from his obligation of full compliance of the said terms and conditions. The policy will be awarded once the mortgagees have given their approval. The offer will be automatically rejected if it does not meet the terms and conditions detailed in the number 5 of this documentation Terms and Conditions of the Required H&M Policy Policy year.- The inception of the required marine insurance policy will begin on 18 October 2010 at hours (local time in Athens) and will expire on 18 October 2010 at hours Time Period of Validity of the offer.- The offer must have a time period of validity of at least 70 days counted from the day on which the offer was submitted. (September 15 th 2010 local time of Ecuador) Notifications.- The results of the tender process will be notified via on September 29 th 2010 or on the date on which the mortgagees have given their approval Insurance Market Lloyd s and/or International Underwriting Association IUA Other reputable markets lead by a Lloyd s and/or IUA Underwriter. 3. QUESTIONS AND CLARIFICATIONS The participant will be allowed to make any question related to this tender process by sending his queries to the address pollux@flopec.com.ec no later than September 7 th 2010 at 17:00 (local time of Ecuador). Questions sent in a different way from via or after the indicated time/date, as indicated above, will not be accepted The companies will answer questions via no later than September 10 th 2010 at 17:00 (local time of Ecuador). The answers will be copied to all participants known at that stage of the process. 3

4 4. CONTENT OF THE OFFER 4.1. The offer will contain the following chart: VESSEL PICHINCHA ZARUMA AZTEC Insured Amounts a) Hull & Machinery $ ,00 $ ,00 $ ,00 b) Increased Value $ ,00 $ ,00 $ ,00 c) War Risks $ ,00 $ ,00 $ ,00 d) Loss of Hire.- Daily Cost $ ,00 Annual Premium Rates (%) a) Hull & Machinery b) Increased Value c) War Risks d) Loss of Hire. Annual Premium in US Dollars a) Hull & Machinery b) Increased Value c) War Risks d) Loss of Hire. Overall Premium per Vessel in US Dollars Deducible per Claim $ ,00 $ ,00 $ ,00 Deductible for Loss of Hire 14 days Validity of the Offer 70 days 70 days 70 days The offer will contain a scanned certificate, signed/stamped by the leading Underwriter, evidencing their support for each quotation for a supported share of not less than 75%. Please refer to number 6 of this documentation. The draft policy must be attached to the offer. 4

5 5. TERMS AND CONDITIONS OF THE REQUIRED H&M POLICY The offer will only take into account the following terms and conditions as described below: 5.1. HULL & MACHINERY TYPE: ASSURED: Marine Hull FLOTA PETROLERA ECUATORIANA as Managers with individual Owning Companies as follows: 1) Pegasus Oil Shipping Inc 2) Pisces Oil Shipping Inc 3) Pollux Oil Shipping Inc and associates and affiliated and subsidiary for their respective rights and interests. In respect of vessel No.1 : AEGEAN BALTIC BANK is noted as Mortgagee In respect of vessel No.2 and 3 : BNP PARIBAS SUISSE S.A. are noted as Mortgagee PERIOD: VESSELS: INTEREST AND VALUE: AGREED VALUE: TRADING: CONDITIONS: From hours 18 October 2010 to hours 18 October 2011 local time in Athens. 1) AZTEC 2) PICHINCHA 3) ZARUMA Including new and acquired and managed and chartered vessels and values, terms, conditions and rates agreed Contract leader here on. Hull, Materials, Machinery, Outfit, and everything connected therewith, nothing excluded. 1) USD 46,800,000 2) USD 54,065,520 3) USD 54,065, % of values as above. Worldwide within American Institute Trading Warranties or held covered at rate agreed by Contract leader hereon. American Institute Hull Clauses (June 2, 1977) (Clause A1B) amended to exclude collision liability absolutely. Deductible in line: USD in respect of vessel 1 5

6 USD in respect of vessels 2 and 3 American Hull Insurance Syndicate Liner Negligence Clause (June 2, 1977) Special American Clause for use with American Hull Clauses (June 2, 1977) Automatic Acquisition Clause General Average, Salvage and Salvage Charges as per York Antwerp Rules 1924, 1950, 1974 or 1994 at Owner s option. Including loading and/or discharging at sea and/or going alognside within port limits subject to customary and adequate fendering. Average Adjusters may be appointed by the Assured in accordance with international norms. Including loading and/or discharging at sea and/or going alongside within port limits subject to customary and adequate fendering. Average Adjusters may be appointed by the Assured in accordance with international norms. Where vessel is engaged in lightening / transhipment operations or cargo loading or discharging from or into another vessel the policy deductible shall be applicable in respect of the aggregate of claims arising therefrom for the period of such operation. To return daily pro rata premium in respect of unexposed period in the event of total loss of vessel from a peril not insured hereunder. This insurance is also specially to cover loss of or damage to any part of the insured interest hereunder from any cause whatsoever in full and without deduction should any part of the aforesaid be ashore under any circumstances (whether on quay, in buildings, sheds or elsewhere) or under repair or transit (from and to the vessel or otherwise). Institute Radioactive Contamination, Chemical, Biological, Bio- Chemical and Electromagnetic Weapons Exclusion Clause ( ) (Cl. 370) with line 244 of the American Institute Hull Clauses (June 2, 1977) (Clause A1B) thereby deleted. Institute Cyber Attack Exclusion Clause ( ) (Cl. 380). War Trading Advice Clause (576WIL00538). Asbestos Exclusion Clause. Political Risk, Financial Guarantee and Credit Risk Exclusion Clause. Including Assured, Co-assured and Waivers of subrogation, Interest of Mortgagees (and Notices of Assignment in respect thereof) and Loss Payee Clause if and in terms as agreed Contract leader hereon. Brokers Cancellation Clause (576WIL00878). Minimal Value Processing Clause (576WIL00670). Contracts (Rights of Third Parties) Act 1999 Exclusion Clause (JH2000/ June 2000). Premium Collection and Continuity Commission Clause as 6

7 attached. EXPRESS WARRANTIES: CHOICE OF LAW AND JURISDICTION Warranted vessels classed and class maintained. Warranted Inert Gas System maintained. This insurance shall be governed by and construed in accordance with the law of England and Wales and each party agrees to submit to the exclusive jurisdiction of the courts of England and Wales. SPECIAL AMERICAN CLAUSE FOR USE WITH AMERICAN HULL CLAUSES AFFILIATED COMPANIES CLAUSE In respect of the vessel(s) insured hereunder it is agreed that this policy also covers the Assured, and affiliated Companies of the Assured be they owners, subsidiaries, or inter-related companies and as bare-boat charterers and/or charterers and/or sub-charterers and/or operators and/or in whatever capacity, and shall so continue to cover notwithstanding the provisions of this policy with respect to change of ownership or management. Provided however, that in the event of any claim being made by an affiliated subsi diary or interrrelated company under this clause it shall not be entitled to recover in respect of any liability to which it would not be subject if it were the owner of the vessel, not to a greate r extent than an owner would be entitled in such event to recover. It is further agreed that these insurers waive any right of subrogation against any subsidiary, affiliated or inter-related company of the Assured, excepting to the extent that any such company is insured against the liability asserted. However should the vessel be sold to or transferred to or chartered on a bareboat basis to others than the Assured or the Affiliated Companies of the assured, or be requisitioned on a bareboat basis the provisions of this policy with respect to change of ownership or management shall govern. 2. LEASED EQUIPMENT CLAUSE This Insurance is extended to cover equipment (including bunkers and/or spare bunkers furnished by charterers or others) and apparatus not owned by the Assured but installed for use on the insured Vessel, whether such equipment or apparatus be in the nature of aids to navigation or communication or otherwise, subject to all terms and conditions of this policy. 3. PASSENGER EQUIPMENT CLAUSE This insurance is extended to include, bunkers and/or spare bunkers, bar stores, equipment for passengers amusements, saloon and passenger cabin fittings, equipment, furnishings and decorations as well as all other stores and supplies, including stocks in Vesse l's shops, provi ded the same are owned by the Assured. 4. RADIO AND AIDS TO NAVIGATION CLAUSE 7

8 Radio apparatus and equipment, echo sounders, navigating equipment and other apparatus or equipment used for the purpose of communication or as aids to navigation or safety devices, portable cargo containers (such as refrigerated boxes etc.) where permanently installed in the insured vessel, tank cleaning equipment, also equipment consisting of projection machines, sound apparatus and motion picture film shall be covered by this policy and included within the agreed valuation of the Hull, even when not owned by the Assured, provide d the Assured has assumed liability therefore; but the liability of Underwriters (either as to amount or as to the risks covered) shall not exceed the assured's liability to which underwriters would be subject if the property were fully owned by the Assured whichever shall be least. 5. TOWAGE CONTRACT CLAUSE Where in accordance with established local practice the Assured or the Charterer en ters into pilotage or towage contracts under which the Assured or the Charterer assumes liability for any damages resulting from collision of the vessel insured with another ship or vessel, including the towing vessel, and agrees to indemnify the pilot or the towboat and/or her owners, charterers, operators, managers, agents and/or pilots against loss or liability for any such damage, it is agreed that amounts paid by the Assured or Charterer pursuant to such agreement, in respect of such damage caused by collision between the vessel insured and any other ship or vessel, shall be deemed payments "by way of damages to any other person or persons" and to have been paid "in consequence of the insured vessel being at fault" within the meaning of the Collision Clause in this policy to the extent that such payments would have been covered under the said Collision Clause ifthe insured vessel had been responsible for damage in the absence of any agreement. Provided always that in no event shall the aggregate amount of liability of Underwriters under the Collision Clause, including this endorsement, be greater than the amount of the statutory limitation of liability to which the Assured is entitled; or would be entitled if the Assured's liability under any indemnity agreement referred to in this endorsement were included among the liabilities subject to such statutory limitation. 6. PILOT S NON-LIABLITY CLAUSE This insurance shall not be prejudiced by reason of any agreement limiting or exempting the liability of Pilots and/or Tugs and/or Tow boats and/or their owners when the Assured and/or Charterers accept such contracts in accordance with established local practice or are compelled to accept such contracts. ASBESTOS EXCLUSION CLAUSE It is hereby understood and agreed that this policy shall not apply to claims based upon, arising out of, directly or indirectly resulting from or in consequence of, or in any way involving: 1. asbestos, or 2. any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos or exposure to asbestos, PREMIUM COLLECTION & CONTUINUITY COMMISION CLAUSE At inception of this policy, 90% of the due premium shall be paid to Underwriters. Furthermore and during the period of this policy 90% of all Additional Premiums and Return Premiums will be paid or collected. Provided that this insurance is continued / renewed with the same underwriter hereto for not less than the expiring order and subject to there being no claims reported during the twelve month period 8

9 to which this clause relates, the remaining balance that may become due will not be paid to Underwriters. In the event the order hereon is reduced or a claim being settled by underwriters hereunder not only shall the remaining balance become immediately due and payable and the Continuity Commission be lost but this clause shall automatically CEASE and not reattach to the renewal placing unless specifically agreed by the slip leader INCREASED VALUE/DISBURSEMENTS TYPE: ASSURED: Insurance of Marine FLOTA PETROLERA ECUATORIANA as Managers with individual Owning Companies as follows: 1) Pegasus Oil Shipping Inc 2) Pisces Oil Shipping Inc 3) Pollux Oil Shipping Inc and associates and affiliated and subsidiary for their respective rights and interests. In respect of vessel No.1 : AEGEAN BALTIC BANK is noted as Mortgagee In respect of vessel No.2 and 3 : BNP PARIBAS SUISSE S.A. are noted as Mortgagee PERIOD: VESSELS: INTEREST AND VALUE: AGREED VALUE: TRADING: From hours 18 October 2010 to hours 18 October 2011 local time in Athens. 1) AZTEC 2) PICHINCHA 3) ZARUMA Including new and acquired and managed and chartered vessels and values, terms, conditions and rates agreed Contract leader hereon. Disbursements and Increased Value etc. Total Amounts: 1) USD 11,700,000 2) USD 13,516,380 3) USD 13,516, % of values as above. Worldwide within American Institute Trading Warranties or held covered at rate agreed by Contract leader hereon. Notwithstanding the above Additional Premium hereon at 50% of Hull and Machinery additional premiums or scale if applicable. 9

10 CONDITIONS: CHOICE OF LAW AND JURISDICTION American Institute Increased Value and Excess Liabilities Clauses (November 3, 1977) (Clause A175) Amended to exclude collision liability absolutely. Including any and all additional clauses and/or amendments as Hull and Machinery etc. risks policy as far as applicable hereunder. Amounts agreed and deemed proven at inception. Institute Radioactive Contamination, Chemical, Biological, BiooChemical and Electromagnetic Weapons Exclusion Clause ( ) (Cl. 370) with line 133 of the American Institute Increased Value and Excess Liabilities Clauses (November 3, 1977) (Clause A175) thereby deleted. War Trading Advice Clause (576WIL00538). Institute Cyber Attack Exclusion Clause ( ) (Clause 380). Including Assured, Co-assured and Waivers of subrogation, Interest of Mortgagees (and Notices of Assignment in respect thereof) and Loss Payee Clause if and in terms as agreed Contract leader hereon. Brokers Cancellation Clause (576WIL00878). Minimal Value Processing Clause (576WIL00670). Contracts (Rights of Third Parties) Act 1999 Exclusion Clause (JH2000/ June 2000). Premium Collection and Continuity Commission Clause. This insurance shall be governed by and construed in accordance with the law of England and Wales and each party agrees to submit to the exclusive jurisdiction of the courts of England and Wales WAR RISKS TYPE: ASSURED: Insurance of Marine FLOTA PETROLERA ECUATORIANA as Managers with individual Owning Companies as follows: 1) Pegasus Oil Shipping Inc 2) Pisces Oil Shipping Inc 3) Pollux Oil Shipping Inc and associates and affiliated and subsidiary for their respective rights and interests. In respect of vessel No.1 : AEGEAN BALTIC BANK is noted as Mortgagee In respect of vessel No.2 and 3 : BNP PARIBAS SUISSE S.A. are noted as Mortgagee PERIOD: VESSELS: From hours 18 October 2010 to hours 18 October 2011 local time in Athens. 1) AZTEC 2) PICHINCHA 10

11 3) ZARUMA Including new and acquired and managed and chartered vessels and values, terms, conditions and rates agreed Contract leader hereon. INTEREST AGREED VALUE: AGREED VALUE: TRADING: 1) USD 58,500,000. 2) USD 67,581,900 3) USD 67,581, % of values as above. This coverage shall extend world-wide, subject to Navigation Limitations for Hull War, Strikes, Terrorism and Related Perils Endorsement (JW2005/00 la). JWC Hull War, Strikes, Terrorism and Related Perils - Listed Areas 2 August Hull War, Strikes, Terrorism and Related Perils - Notice of Cancellation Administration Clause (JW2005/00 IB). Hull and Machinery etc. CONDITIONS: American Institute Hull War Risks and Strikes Clauses (December 1, 1977) (Clause A237). Including Addendum To American Institute Hull War Risks and Strikes Clauses December 1, 1977 (April 1, 1984). Including American Hull Insurance Syndicate War Risks Protection and Indemnity Clauses (January 18, 1970) (Clause A500). Including loss or damage to vessel caused by vandalism, sabotage or any terrorist or any person acting maliciously or from a political motive. Including American Hull Insurance Syndicate Deliberate Damage Clause (Pollution Hazard) (1 st August 1973). All other Hull conditions deemed incorporated herein if and as applicable. Crew Personal Effects This insurance covers the liability and the obligation of the Assured for any loss of, damage and or expenses to the personal effects of the master, officers and crew of the insured vessels in consequence of war risks and strikes. War Risks Protection And Indemnity including crew This insurance covers the liabilities of the Assured to the crew of the insured vessels which arise from war and strikes, riots and 11

12 civil commotions risks etc. as per Institute Clauses ( ). Including vandalism and sabotage and including liabilities which would be covered under the rules of the U.K. Mutual Club but which are excluded therefrom by the free of capture and seizure clauses therein. General Conditions Subject to Institute Notice of Cancellation, Automatic Termination of Cover and War and Nuclear Exclusion Clause (1.1.95) (CL.359) with paragraphs 3.2 to deemed to be replaced by the Institute Radioactive Contamination, Chemical, Biological, Bio- Chemical and Electromagnetic Weapons Exclusion Clause ( ) (Clause 370). Institute Cyber Attack Exclusion Clause ( ) (Clause 380). Including Assured, Co-assured and Waivers of subrogation, Interest of Mortgagees (and Notices of Assignment in respect thereof) and Loss Payee Clause if and in terms as agreed Contract leader hereon. Brokers Cancellation Clause (576WIL00878). Minimal Value Processing Clause (576WIL00670). Contracts (Rights of Third Parties) Act 1999 Exclusion Clause (JH2000/ June 2000). Premium Collection and Continuity Commission Clause CHOICE OF LAW AND JURISDICTION This insurance shall be governed by and construed in accordance with the law of England and Wales and each party agrees to submit to the exclusive jurisdiction of the courts of England and Wales LOSS OF HIRE (FOR THE M/T AZTEC ONLY) TYPE: ASSURED: Insurance of Marine FLOTA PETROLERA ECUATORIANA as Managers with individual Owning Companies as follows: 1) Pegasus Oil Shipping Inc and associates and affiliated and subsidiary for their respective rights and interests. AEGEAN BALTIC BANK is noted as Mortgagee PERIOD: VESSELS: From hours 18 October 2010 to hours 18 October 2011 local time in Athens. 1) AZTEC 12

13 Including new and acquired and managed and chartered vessels and values, terms, conditions and rates agreed Contract leader hereon. INTEREST AGREED VALUE: Loss of Hire Insurance Daily amount: USD 25,000 Total amount: USD2,250, % of Total Amount above AGREED VALUE: TRADING: 100% of values as above. Worldwide within American Institute Trading Warranties but War Risks subject to JWC Hull War, Strikes, Terrorism and Related Perils Listed Areas II June Subject to Navigation Limitations for Hull War, Strikes, Terrorism and Related Perils Endorsement (JW2005/00IA). This insurance to pay up to the Total Amount Insured, subject to the Daily Indemnity and subject to a limit of90 days each accident or occurrence or series of accidents or occurrences arising out of one event, but limited to 90 days in all. Excess of 14 days each accident or occurrence. CONDITIONS: Subject to A B Stewart Wording LPO 454 including War. London Blocking and Trapping Addendum LPO 444. Daily Amounts fixed and agreed whether Chartered or Unchartered. All special terms, clauses and conditions contained in the vessels Hull & Machinery Policy or policies deemed incorporated herein, if and as applicable. Subject to Institute Notice of Cancellation, Automatic Termination of Cover and War and Nuclear Exclusion Clause (1.1.95) CI 359 with paragraphs 3.2 to deemed to be replaced by the Institute Radioactive Contamination, Biological, Bio-Chemical and Electromagnetic Weapons Clause ( ) (CI.370). Institute Cyber Attack Exclusion Clause ( ) (CI.380). War risks subject to Hull War, Strikes, Terrorism and Related Perils Notice of Cancellation Administration Clause (JW2005/001 B). Including Assured, Co-assured and Waivers of subrogation, Interest of Mortgagees (and Notices of Assignment in respect thereof) and Loss Payee Clause if and in terms as agreed Contract leader hereon. Brokers Cancellation Clause (576WIL00878). Minimal Value Processing Clause (576WIL00670). Contracts (Rights of Third Parties) Act 1999 Exclusion Clause (JH2000/ June 2000). 13

14 Premium Collection and Continuity Commission Clause. CHOICE OF LAW AND JURISDICTION This insurance shall be governed by and construed in accordance with the law of England and Wales and each party agrees to submit to the exclusive jurisdiction of the courts of England and Wales. 6. CERTIFICATE OF QUOTATION For the attention of: FLOTA PETROLERA ECUATORIANA as Managers with individual Owning Companies as follows: 1) Pegasus Oil Shipping Inc 2) Pisces Oil Shipping Inc 3) Pollux Oil Shipping Inc and associates and affiliated and subsidiary for their respective rights and interests. We, the undersigned, hereby confirm that we offer our capacity as leading Underwriters for the insurances of: a) Hull & Machinery b) Disbursements and Increased Value c) War etc. risks d) Loss of Hire (M/T AZTEC only) (delete as appropriate) for the insurances of the above Assured(s) in relation to the vessels AZTEC, ZARUMA and PICHINCHA as detailed within the attached presentation which we also sign/date as the date of this Certificate. In the event that we take a minority share of the risks hereby mentioned, we confirm that our quotation is supported and we jointly and severally offer not less than 75% support for the terms of the quotation Underwriter: Date: Syndicate/company: Contact address: 14