The Indonesian prosecutor’s office announced that starting December 2, it will launch an auction to sell an Iranian oil tanker and its massive crude oil cargo. The case began after the ship’s captain was convicted of “marine pollution and illegal oil transfer.”
The Jakarta Globe, citing the Indonesian prosecutor’s office, reported that the tanker MT Arman 114, flying the Iranian flag, will be auctioned along with 166,975 tons of light crude oil (equivalent to 1.2 million barrels).
The starting value of the auction has been set at about USD 70 million, and bidders must pay USD 7 million as a participation deposit.
The Marine Pollution Case and the Confiscation Order
The spokesperson for the Indonesian prosecutor’s office announced on Sunday, November 23, that the auction includes both the vessel and its oil cargo.
The Arman 114 tanker, built in South Korea in 1997, was seized under an order issued by the Batam district court and transferred to state ownership.
In July 2023, the Indonesian Maritime Security Agency announced that the vessel had tampered with its automatic identification system (AIS) to show its position as being in the Red Sea while it was actually in the North Natuna Sea.
According to this state agency, the Egyptian captain, twenty-eight crew members, and three passengers on the tanker were arrested at the time.
The seizure followed the captain’s conviction for illegally discharging waste into the sea.
He has been sentenced to seven years in prison and fined USD 300,000.
Violation: Radar Off and Ship-to-Ship Oil Transfer
The investigation began when a patrol from the Indonesian Maritime Security Agency identified two tankers that had turned off their AIS systems and were docked side by side.
Drone images showed the two vessels connected by a pipeline.
The images also confirmed an oil leak from the Arman 114 into the sea.
According to the Indonesian prosecutor’s office, the illegal ship-to-ship (STS) oil transfer took place between the Iranian tanker and the Cameroon-flagged tanker MT S Tinos.
This is not the first time Indonesia has seized tankers carrying Iranian oil for maritime violations, but the simultaneous auction of both the vessel and its large cargo makes this case one of Jakarta’s most significant actions against Iranian tankers in recent years.
