Viva Energy Australia Pty Ltd v MT “AG Neptune”

Viva Energy Australia Pty Ltd sought urgent court orders to address the situation of the vessel MT "AG Neptune" which was arrested off the Port of Newcastle. The vessel was critically low on gasoil and fuel oil, and without replenishment, it would become a dead ship and a significant safety hazard. The primary concern was the vessel's potential to become a navigational risk and safety hazard if it was not resupplied with fuel. The court was tasked with determining whether the vessel could be allowed to sail to Gladstone, Queensland, to replenish its bunkers while remaining under arrest. The legal issues centred on whether permitting the vessel to sail under arrest would pose an unacceptable risk to navigation or safety, and if it would likely abscond from the jurisdiction.

The Federal Court found that the vessel was unlikely to leave the jurisdiction once the fuel was replenished, and allowing it to sail to Gladstone would mitigate the risk of it becoming a navigational hazard. The court held that the risks associated with the vessel's current situation outweighed the potential risks of it sailing to Gladstone, provided certain conditions were met. These conditions included the vessel sailing directly to Gladstone, maintaining records of fuel consumed, and allowing the Marshal to authorise personnel to remain on board to ensure the vessel's safe custody. The court balanced the need to address the vessel's immediate safety concerns against the rights of the arresting party, ultimately deciding that the safety of navigation and the vessel itself took precedence.

The orders granted by the court permitted the vessel to sail under arrest to Gladstone to stem bunkers, with strict conditions to ensure the vessel's continued control and safety. The costs of the voyage and bunkering were to be borne initially by the vessel, subject to future accounting. Additionally, the Master of the vessel was required to maintain records of fuel consumption during the arrest period. The Marshal was authorised to allow personnel on board to oversee the vessel's custody. The court reserved costs for future determination, indicating that further orders might be made regarding financial matters.