Oil has been spotted in the water from a possible bunker leak following a collision between two tankers in the South China Sea , says Gard.

The Norwegian protection and indemnity club confirmed that it was covering the 74,200-dwt Hafnia Nile (built 2017) that caught on fire along with the Sao Tome & Principe-flagged 300,000-dwt Ceres I (built 2001).

It said that cover for the Ceres I remained unknown and was not provided by any of the 12-strong International Group of P&I Clubs, which represents about 87% of oceangoing tonnage.