Summary

This claim arises out of the tainting of a cargo (the "Cargo") of Iraqi SOMO (State Oil Marketing Organisation) Basrah Pipeline High Sulphur Straight-Run Fuel Oil ("SRFO"). The Cargo was tainted with a higher than normal quantity of Organic Chlorides. The Cargo was sold by the Defendant, Onex DMCC ("Onex"), to the Claimant, Mercuria Energy Trading SA ("Mercuria") pursuant to a contract concluded on CIF terms. Delivery was to be made in the US Gulf Coast.

The Parties are both oil traders. Mercuria is a substantial global trader based in Switzerland. Onex is based in the Middle East and its trade is largely focussed on the sale of oil that originates in Iraq. The Parties had traded Iraqi SRFO cargoes before on two or three previous occasions. Each of these trades had been concluded between Mr von Schweinitz for Mercuria and Mr Taeeb for Onex.