Chevron Australia Pty Ltd v The Registrar of the Australian Register of Ships

REASONS FOR JUDGMENT 1 This is the final hearing of an application by Chevron Australia Pty Ltd under s 59 of the Shipping Registration Act 1981 (Cth). Section 59(1)(c) relevantly provides that if an entry wrongly exists in the Australian Register of Ships maintained under the Shipping Registration Act, a person aggrieved may apply to the Supreme Court of a State or Territory for rectification of the Register and the Court may make such order as it thinks fit directing the rectification of the Register. 2 The respondent to the proceeding is the Registrar of the Australian Register of Ships. 3 Exhibit MMT5 to the affidavit of Michelle Marie Taylor sworn 21 March 2011 filed by leave in the proceeding is a letter to the solicitors for the applicant from the acting general counsel on behalf of the Australian Maritime Safety Authority. By that letter, the respondent "submits to the jurisdiction of the Court in this matter and will not object to any orders issued at the completion of the hearing, save as to costs. I understand that it is your intention to hand up a copy of this correspondence to the Court at the listed hearing. A copy of the filed Appearance is included by way of service". The respondent filed an Entry of Appearance on 18 March 2011. 4 Although s 59 of the Shipping Registration Act expressly confers jurisdiction on the Supreme Court of a State or a Territory, it is clear by operation of s 39B(1) and s 39B(1A)(c) of the Judiciary Act 1903 (Cth) that general civil original federal jurisdiction is conferred upon the Federal Court of Australia in any matter arising under a law of the Commonwealth Parliament. Accordingly, the Federal Court has jurisdiction in applications made under s 59 of the Shipping Registration Act: Adsteam Harbour Pty Limited v The Registrar of the Australian Register of Ships [2005] FCA 1324 per Allsop J at [6]-[7]. 5 The applicant seeks a declaration that it is the owner of 10/64ths interest in the ship "Cossack Pioneer"; a declaration that it is entitled to be entered on the Register as the owner of 10/64ths interest in the ship; a declaration that the Register wrongly records Chevron Asiatic Limited as the current owner of 10/64ths interest in the ship; and an order that the Register be rectified to record Chevron Australia Pty Ltd as the owner of 10/64ths interest in the ship "Cossack Pioneer". 6 The application is supported by the affidavit of Michelle Marie Taylor filed 18 March 2011; the affidavit of Erica Lampard filed 15 March 2011; the affidavit of Michelle Marie Taylor sworn 21 March 2011 and filed by leave on 22 March 2011; and the affidavit of Andrea Kate Walsh sworn 21 March 2011 and also filed by leave on 22 March 2011. 7 The Register currently records an entity described as Chevron Asiatic Limited as holding ten of the registered 64 interests in the ship "Cossack Pioneer". On 22 December 1999 Chevron Asiatic Limited sold, with effect on and from 1 April 1999, all of its "Australian assets" under the terms of a document called the Australian Reorganisation Sale and Purchase Agreement, which included its interest in the "Cossack Pioneer", to Chevron Australia Pty Ltd, the applicant in these proceedings. The Reorganisation Agreement is Exhibit EL2 of the affidavit of Erica Lampard filed 15 March 2011. 8 By a Deed of Assignment and Assumption dated 22 December 2000, all of the right, title and interest of Chevron Asiatic Limited in respect of the "Cossack Project Agreement" dated 12 April 1991 under which the ship the "Cossack Pioneer" is utilised, was assigned to and assumed by the applicant. The "Cossack Project Agreement" is also included in the definition of "Australian assets" at para (c) of the definition of that term at cl 1.1 of the Reorganisation Agreement. 9 No bill of sale as required by the Shipping Registration Act has ever been lodged with the Registrar. Nor was any transfer of the interest of Chevron Asiatic Limited in the "Cossack Pioneer" to the applicant ever registered. Chevron Asiatic Limited was deregistered on or about 31 December 2006. That company began life as a company called Chevron Asiatic LLC. It subsequently converted to a limited liability company on 30 August 2006. The effective date of cancellation of the entity was 31 December 2006. Those matters are evident from a certificate which is Exhibit EL4 to the affidavit of Erica Lampard filed 15 March 2011. 10 The applicant together with all other co-owners of the ship "Cossack Pioneer" have entered into a sale and purchase agreement to sell the ship to Cabinda Gulf Oil Company Limited of Luanda in the Republic of Angola. The applicant understands that on or about 25 March 2011 the operator of the ship will arrange to disconnect the ship from its mooring as a Floating Production Storage and Offloading Unit located between two particular oil fields described as the Cossack and Wanaea oilfields in order to tow the ship to Singapore. The ship is intended to be delivered to the buyer before the cancellation date stipulated in cl 6(a) of the sale agreement, namely, 31 March 2011. 11 As I have already noted, the Registrar has appeared in the proceeding by notice of appearance filed 18 March 2011and takes no objection to the proposed declarations and the proposed rectification order. 12 I am satisfied that the entry in the Register of Chevron Asiatic Limited as the owner of 10 of the 64 interests in the ship is wrongly entered and the Register ought to be rectified in terms of the proposed orders: THE COURT DECLARES THAT: 1. Chevron Australia Pty Ltd is the owner of 10/64ths interest in the ship "Cossack Pioneer" formerly owned and shown on the Australian Register of Ships as being owned by Chevron Asiatic Limited. 2. Chevron Australia Pty Ltd is entitled to be entered on the Australian Register of Ships as the owner of 10/64ths interest in the ship "Cossack Pioneer" Official Number 854283. 3. The Australian Register of Ships presently wrongly records Chevron Asiatic Limited as the current owner of 10/64ths interest in the ship "Cossack Pioneer" Official Number 854283 by reason of the omission of Chevron Australia Pty Ltd as owner of 10/64ths interest in the ship "Cossack Pioneer" Official Number 854283, such omission and error not being due to any error or decision of the Registrar or one of her officers.