GRAND CAYMAN, CAYMAN ISLANDS; 19 September 2018

The Utility Regulation and Competition Office (OfReg) has fined Sol Petroleum Limited for the fuel tank fire at SOL’s Jackson Point Terminal in July 2017. OfReg will continue to work with SOL and the rest of the Oil & Gas sector to implement the recommendations arising from the investigation to ensure the industry is meeting the minimum standards of safety and compliance on a consistent basis.

The following statement sets out the key outcomes of the investigation and regulatory action:

Following an exhaustive investigation, OfReg and Sol would like to inform the public that agreement has been reached in relation to the imposition of an appropriate Administrative Fine by OfReg to be paid by Sol in relation to the Incident. This Administrative Fine, in the sum of CI$200,000 (plus costs of CI$86,700 for the investigation), is intended to reflect the potentially serious nature of the Incident and the concerns raised in the community, but also recognises Sol’s history in the Cayman Islands as a good corporate citizen, noting, in particular, Sol’s transparency and full cooperation with the investigation, acceptance of responsibility and good health and safety record prior to the Incident.

OfReg and Sol are satisfied that they have established and identified the circumstances and contributing factors leading to the Incident and wish to reassure the public of the Cayman Islands, that where applicable, lessons have been learnt, shortcomings addressed and measures put in place to guard against any possibility of a repetition of the Incident in the future, including an agreement that there shall not be any welding conducted on in-service fuel storage tanks.

OfReg, as the multi-sector regulator in the Cayman Islands covering fuels, water, energy and ICT, takes its responsibility as a protector of the public with regards to these areas seriously.

Duke Munroe, Acting CEO and Director of Fuels (Market) commented on the decision: “our mandate as the regulator is to enforce relevant codes, standards and best practices adopted under the Dangerous Substances Law. We have worked closely with SOL to go over mitigation factors that will reduce the risks of similar incidents taking place in the future and they (Sol) have already implemented some measures relating to incident.

The fine and the investigation costs have been paid by Sol.

OfReg (the Utility Regulation and Competition Office) is the independent regulator for the electricity, information and communications technology, water, wastewater and fuels sectors in the Cayman Islands. OfReg also regulates the use of electromagnetic spectrum and manages the .ky internet domain.

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IMAGE: Fire at Rubis Terminal July 24 2017 – FILE