Panama to Require Full Traceability for Offshore Oil Transfers

[By: Panama Maritime Authority]

The Panama Ship Registry has become the first naval registry in the world to implement stricter controls and mandatory traceability for offshore ship-to-ship (STS) transfers of hydrocarbons. This new measure, which came into effect on August 6, 2025, is outlined in Resolution No. 106-035-DGMM issued by the Directorate General of Merchant Marine. According to Article 9 of the resolution, non-compliance—depending on its severity—may lead to the cancellation of a vessel’s Panamanian registration.

The regulation requires all Panamanian-flagged oil tankers with a gross tonnage of 150 or more to notify the Panama Maritime Authority (PMA) at least 48 hours in advance, providing full technical and logistical details of each STS operation.

The mandatory information includes:

• Name, flag, call sign, IMO number, and estimated time of arrival (ETA) of all vessels involved
• Date, time, and geographical coordinates of the operation’s start
• Type of maneuver: at anchor or underway
• Type and quantity of hydrocarbons to be transferred
• Estimated duration of the operation
• Contact information for each vessel’s Designated Person Ashore (DPA)
• Confirmation of an STS plan in accordance with Regulation 41 of the MARPOL Convention

If the estimated arrival time at the transshipment point varies by more than six hours, the vessel’s captain, owner, or DPA must update the notification to the PMA.

This measure responds to the increasing use of vessels in illicit activities such as covert crude transport, sanctions evasion, and operations lacking environmental controls—practices often associated with the so-called “shadow fleet.”

It aligns with International Maritime Organization (IMO) regulations and underscores Panama’s commitment as a responsible flag State, promoting maritime safety, operational integrity, and protection of the marine environment.

With this move, Panama reaffirms its global leadership in maritime regulation—enhancing trust in its registry, ensuring compliance with international standards, and contributing to the fight against the misuse of flags of convenience.