Taipei, June 14 (CNA) State-owned oil supplier CPC Corp., Taiwan, said Friday that an "attack" in the Gulf of Oman Thursday on a tanker the company chartered to deliver naphtha is expected to result in losses of about NT$8 million (US$253,968).
The preliminary assessment was made by the oil supplier after taking insurance payments into account, CPC Vice President Chiu Chia-shou (邱家首) said, adding that the "attack" would not have a major impact on the company's operations.
The Front Altair, which was charted by CPC to carry 75,000 tons of naphtha worth US$34 million, was one of two tankers hit by unknown objects from an unidentified source resulting in the vessel catching fire in an area near the United Arab Emirates.
The 23 non-Taiwanese crew members on the Front Altair, which is registered in the Marshall Islands, were rescued by another cargo ship in the area, the Hyundai Dubai.
Chiu said it has been confirmed that the fire on the Font Altair has since been put out, but the blaze raised the temperature of the tanker, preventing inspectors from boarding.
The vessel remains adrift and has not sunk as some have reported, Chiu said, adding that the 75,000 tons of naphtha represented just two days of inventory for CPC.
As the company currently has 75 days of inventory, the "attack" will not impact supply to the local market.
According to Chiu, CPC had planned to receive 200,000 tons of naphtha in June, including the 75,000 tons carried by the Front Altair, and a further 200,000 tons in July.
Another 300,000 tons of naphtha is scheduled to arrive in Taiwan in August, so there will be no shortage of naphtha for CPC cracking processes to supply oil in the local market, Chiu said.