Major problems: the latest word on oil major approval clauses

Alexander Wright, of 4 Pump Court, warns owners to take care to read the small print

Those familiar with the tanker trade hardly need reminding as to the importance of oil major approval (OMA) clauses. Quite aside from representing a “gold standard” of vetting approval (the majors often being seen as more stringent than class and flag state authorities), the presence or absence of such approvals can be a significant factor in the marketability of the vessel. Legally, however, their drafting can give rise to a minefield of problems on which until recently there had been a comparative dearth of authority.