The incident happened at around 10 a.m. while M/VSKO was docked between Iloilo and Guimaras strait.
Iloilo Coast Guard Commander Harold Jarder told The STAR the explosion started inside a cabinet where the oxygen and acetylene tanks are stored.
One crew member was reportedly injured in the blaze.
According to the ships welder, Arthur Aguilar, he was working near the port side when the explosion occurred, followed by a huge fire.
Aside from the cabinet, the ships shower room was also damaged.
The M/V SKO, which has 17 crewmen including Capt. Eldy Aballe, arrived in Iloilo at around 5:50 a.m. yesterday from Iligan City. It was supposed to unload its cargo at the Iloilo port but there was no berth immediately available where the ship could dock.