The development follows Director General of Shipping Deepak Shetty asking the vessel to sail back to Libya and discharge oil consignment at Port Zawiya in Libya under the supervision of National Oil Corporation (NOC).
"UN has lifted sanctions on MT Distya Ameya within 16 days of imposition of sanction," Shetty, who heads Indian Flag and Maritime Administration, told PTI.
The tanker is owned by Mumbai-based Arya Shipping Charterers, while Elektrans Shipping Private Ltd (Mumbai) is crewing and technical manager of the vessel.
However, the tanker was asked by Indian authorities not to move from Malta after it was added to UN sanctions blacklist for illegally carrying crude from Libya on April 26.
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Libyan UN Ambassador Ibrahim Dabbashi had written to 15-member sanctions committee for blacklisting the tanker.
The vessel was engaged on time and voyage charters by Emerald Tankers, Sharjah, UAE & DSA, Sharjah, UAE for a period of 18 months from March 13, 2016.
The vessel on the advice of its foreign charterers had picked up 6.5 lakh barrel of oil of the NOC under the control of the interim government of Libya.
This cargo evacuation was, accordingly, completed on May
6 under supervision and certification of UN and consequently the vessel moved out of the Libyan waters on the same day.
"The vessel had taken on board the said oil consignment at the instance of the foreign charterers/dispondent owners and its India owners/ manager were unaware of the UN sanctions," the statement said.
The owner and the manager on knowing the details "immediately and fully" complied with UN advice to return to Libya and discharge the said consignment of vessel at the UN designated port, it said.