Waste oil collected from Guyana Power and Light Inc. (GPL) facilities remained aboard a leaking barge for months after arrangements for its export stalled, with the vessel’s owner warning the High Court in May that its deteriorating condition threatened a major spill in the Demerara River, according to court documents seen by this publication.
The documents identify the vessel as HT100, owned by businessman Ganshyam Mahase, and outline a dispute with Miami-registered South Eastern Shipping Corp. over the removal of approximately 8,080 barrels of waste Bunker C oil and allegedly unpaid hire.
Mahase said he moved the barge to his own facility at Land of Canaan on January 9 after it developed a hull leak, placing it under continuous watch to prevent it from sinking. South Eastern Shipping disputed responsibility, alleging that Mahase failed to maintain a seaworthy vessel and moved it without the company’s consent.
Justice Peter Hugh referred the contractual dispute to arbitration in September without determining the competing allegations or granting Mahase permission to sell the oil.
The disclosures come amid this week’s emergency response to a barge reportedly carrying approximately 8,000 barrels of waste oil at a private East Bank Demerara wharf. The Civil Defence Commission (CDC) has not identified that vessel, and the documents alone do not establish that it is HT100.
Oil collected for export
In his affidavit supporting the May 15 application, Mahase said St Lucia-registered WGS Enterprises Ltd had contracted with GPL to purchase and remove waste Bunker C oil, or heavy fuel oil. WGS subsequently sold 8,080 barrels to South Eastern Shipping, he stated.
Mahase said the shipping company’s representative, John Louis, contacted him in December 2025 about chartering a barge to store the cargo until a larger vessel arrived to take it out of Guyana.
He described the arrangement as receiving oil from GPL’s Garden of Eden generation plant and holding it “until a larger vessel arrives to export the oil.”
According to his account, HT100 was delivered at Garden of Eden on December 6, 2025, and loading began. The barge was subsequently taken to Adventure on the Essequibo Coast to receive additional oil from GPL’s facility there.
Mahase said the vessel arrived in Essequibo on December 17, received oil the following day and returned to Garden of Eden on December 21 to collect more.
South Eastern Shipping’s defence admitted the paragraphs of Mahase’s affidavit outlining the oil’s source, WGS’s involvement and the loading arrangements.
The filings do not identify the destination country or the larger vessel expected to receive it.
Warning of sinking and spill
Mahase alleged that repeated efforts to arrange offloading were met with explanations that the export vessel had been delayed. He said communication with the company’s representative eventually ceased.
“The Barge eventually developed a leak in its hull and on the 9th day of January, 2026, I made the decision to transport the Barge to my premises at Land of Canaan where the vessel is under the continuous watch of my agents and workmen to prevent sinking,” he stated.
At the time of his affidavit, he said, the cargo remained aboard at his facility awaiting removal by South Eastern Shipping.
Mahase warned that a mishap could cause a major spill, damage the marine environment and disrupt activities in the Demerara River.
“This is an urgent application as the condition of the barge is rapidly deteriorating and the recent inclement weather is posing a challenge to keep the Barge afloat,” he stated.
His application sought termination of the charter agreement, payment of US$146,204 in allegedly outstanding hiring fees and permission to sell the oil to an interested third party and offset the proceeds against the debt.
The attached charter agreement describes HT100 as a Guyana-flagged, 10,000-barrel-capacity fuel oil barge built in 1961. It identifies an initial charter period of 30 days and a hire rate of US$50,000 for that period.
Company disputes responsibility
In its defence affidavit, filed on June 26, South Eastern Shipping denied avoiding communication about removing the oil.
Louis said he had remained in contact with Mahase and had spoken with him on or about June 10, requesting additional time to complete offloading and settle any outstanding balance.
The company alleged that the development of a hull leak approximately five weeks after delivery demonstrated that Mahase had failed to provide and maintain a seaworthy vessel.
It argued that HT100 became off-hire on January 9 under the agreement’s provisions concerning hull defects, meaning that further hire was not payable while it remained in that condition.
South Eastern Shipping calculated the maximum hire for the 34-day period at approximately US$56,666.78. It disputed Mahase’s claim for further payment, alleged that it had overpaid him and sought a full accounting.
The company also challenged his decision to relocate the vessel.
“I further contend that, without my knowledge or consent, the Applicant removed the barge from the agreed location and relocated it to his own premises,” Louis stated.
South Eastern Shipping argued that Mahase’s actions had exposed the surrounding environment to the risks he subsequently relied upon in seeking urgent court intervention.
Mahase denied the allegations. As recorded in the judgment, he maintained that the barge had been delivered seaworthy, that the leak developed after the cargo was left aboard for an extended period, and that relocation was intended to place the vessel somewhere safer.
He also argued that hire continued to accrue because the barge remained afloat and continued to carry the company’s cargo, although this required intervention on his part.
Court declines to decide merits
In his September 2 judgment, Justice Hugh found that the dispute fell within the parties’ agreement to arbitrate in Guyana.
Mahase had argued that arbitration was impractical because of the vessel’s condition, the environmental risks and the company’s alleged lack of cooperation. He also contended that there was effectively no dispute requiring arbitration.
The judge rejected those submissions.
“The respondent has clearly challenged liability for the hire claimed, asserts that the vessel became off-hire, alleges breaches of the charter party by the applicant, and seeks an accounting between the parties,” Justice Hugh stated.
“These are substantive disputes arising directly from the charter party and fall squarely within the scope of the arbitration clause.”
He found no basis for treating the arbitration agreement as invalid or incapable of performance.
“I do not accept that the arbitration agreement is null and void, inoperative, or incapable of being performed,” he said.
Justice Hugh concluded that the court lacked jurisdiction to determine the merits and expressly left the off-hire question to the arbitral tribunal. The ruling therefore did not resolve responsibility for the leak, the disputed relocation or the sums claimed.
The formal order, entered on September 4, referred the parties to arbitration in Guyana and required Mahase to pay G$100,000 in costs. It did not authorise the sale of the cargo.
Current response
It was earlier reported that authorities had activated a coordinated response after a barge reportedly carrying approximately 8,000 barrels of waste oil was observed listing significantly at a private East Bank wharf.
The CDC said then that no oil spill had been confirmed, but containment equipment and response resources had been positioned as a precaution. It did not identify the barge, its owner or the wharf, or explain the cause of the listing.
In Wednesday’s update, the commission said the vessel was upright and stabilised with its cargo intact, and that containment booms had been deployed.
“The CDC wishes to assure the public that the situation remains stable and under control, with coordinated response operations ongoing,” it stated.
The court documents place HT100 at Mahase’s Land of Canaan facility during the proceedings. They do not establish whether arbitration has since commenced, whether the cargo has been moved or whether a subsequent agreement has been reached for its removal.
Mahase was represented by attorneys Manoj Narayan, Ramkumarie Ramdass and Ajay Chowti of Mohabir A. Nandlall & Associates. South Eastern Shipping Corp.’s defence was filed by Brian Primo and Dwayne Braithwaite of the Braithwaite and Primo Law Group. The judgment records Ramdass and Primo as appearing before Justice Hugh.
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