Federal magistrate Nancy K. Johnson said on Tuesday she didn’t have the jurisdiction to order seizure of the tanker, as the ship was 100 kilometres offshore, outside the U.S. territorial waters adding that the case will have to be settled in Iraq.
The tanker named United Kalavrvta carrying a shipment of Kurdish crude arrived near Galveston Bay on Saturday and was supposed to be unloaded by smaller boats owned by Texas-based AET Offshore Services.
Nevertheless, Iraq’s central government claimed ownership of the cargo on Monday via a court filling, suspending the unloading.
On the same day, the federal magistrate ordered seizure of the tanker by the U.S. Marshals Service and its move ashore for safekeeping until the dispute is resolved, however the following day the decision was withdrawn.
The enforcement can take place only if the vessel enters U.S. territorial waters.
Washington has until recently opposed U.S. companies buying Kurdish oil, however the ban has been recently lifted.
AET Offshore Services said it “would be placed at considerable risk if required to lighter and take possession of the cargo before those disputes and claims of ownership are resolved.”
The vessel should be allowed free movement after the cargo is unloaded.