ZAMBOANGA CITY—Tension gripped a private wharf as a group of gunmen confronted elements of the Philippine Antismuggling Task Group (PASG) in a bid to take possession of more than P1 million worth of smuggled crude oil in this southern port city.

PASG Regional Director Dominique Kabigting on Wednesday said the gunmen, reportedly hired by the owner of the smuggled crude oil, arrived at the private wharf along Baliwasan seaside and sought the release of the contraband.

The tension simmered down when the gunmen left the premises of the private wharf where the wooden-hulled vessel named M/L Julmina II , loaded with an estimated 140 barrels containing 200 liters each of crude oil, had dropped anchor.

Kabigting’s personnel reported to him that there were around eight armed people who went to the wharf and tried to take possession of the shipment.

Aside from the barrels, a large quantity of the smuggled crude oil was concealed in boxes intended to be used in storing frozen fish.

At a selling price of P41.35 per liter, Kabigting said the confiscated crude oil is estimated to be worth P1,157,800.

Kabigting has ordered his personnel to remain on alert after one of his staffers informed him that the gunmen had threatened to return to the wharf to take possession of the confiscated crude oil.

He also requested for back-up from the Maritime police to help guard the vessel and the contraband.

Kabigting said the smuggled crude oil, believed to have come from Malaysia, was intercepted by his operatives on Sunday as it arrived in this city.

“We have been watching the arrival of this vessel for the past few days because we have received information before it arrived here,” he disclosed.

“They claimed to have come from Tawi-Tawi, but we have the vessel’s manifest showing they came from Malaysia,” he added.

He identified the owner of the smuggled crude oil as Majib Yusop, who is also the owner of the vessel, with home address at Suterville that falls under barangay San Jose-Gusu, west of this city.

Besides smuggling, the owner of the vessel is also liable for violation of maritime laws, he added.

Authorities will still search the M/L Julmina II thoroughly citing information there were also firearms aboard the vessel.

Aside from crude oil, Kabigting’s men also found a box containing turtle eggs, the collection and gathering of which is prohibited by law.

Strong peso, weak activity nip ATI’s income

ASIAN Terminals Inc. (ATI), the operator of the Manila South Harbor, reported a drop in its income in 2007 as the peso continued to rise against the US dollar and domestic activity in its flagship terminal incurred a double-digit drop.

ZAMBOANGA CITY—Tension gripped a private wharf as a group of gunmen confronted elements of the Philippine Antismuggling Task Group (PASG) in a bid to take possession of more than P1 million worth of smuggled crude oil in this southern port city.

KEPPEL Corp., the world’s largest maker of rigs, led gains in Singapore and South Korean shipyard stocks on expectations that record crude will prompt more oil companies to increase orders for offshore rigs and platforms.

THE Baltic Dry Index, a measure of shipping costs for commodities, fell for the first time in nine days on concerns about an economic slowdown.