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Owner of Fire-stricken Oil Tanker to Pay $2.3M for Sri Lankan Help, Environmental Damage to be Sought Too

A Sri Lankan Navy boat sprays water on the New Diamond, a very large crude carrier (VLCC) chartered by Indian Oil Corp (IOC), that was carrying the equivalent of about 2 million barrels of oil, after a fire broke out off east coast of Sri Lanka September 8, 2020. Sri Lankan Airforce media/Handout via REUTERS

A Sri Lankan Navy boat sprays water on the New Diamond, a very large crude carrier (VLCC) chartered by Indian Oil Corp (IOC), that was carrying the equivalent of about 2 million barrels of oil, after a fire broke out off east coast of Sri Lanka September 8, 2020. Sri Lankan Airforce media/Handout via REUTERS

The tanker was transporting crude oil from the port of Mina Al Ahmadi in Kuwait to the Indian port of Paradip, where the state-owned Indian Oil Corp. has a refinery. The initial fire killed one Filipino crew member and injured another, while 21 other crew members escaped uninjured.

The owner of a large oil tanker that caught fire off Sri Lanka's coast has agreed to pay $2.3 million to the island nation for its help in extinguishing the blaze, an official said Saturday.

MT New Diamond, which was carrying nearly 2 million barrels of crude oil, was damaged by two fires in early September.

Attorney General Dappula de Livera last week submitted an interim claim of $1.8 million to Greece-based Porto Emporios Shipping Inc., the registered owner of the vessel, for services provided by the Sri Lankan navy, air force, ports authority and Marine Environment Protection Authority since the ship caught fire on September 3. On Thursday, he submitted another claim for $500,000 for additional services rendered to the ship.

On Saturday, Nishara Jayaratne, the coordinating officer in the Attorney Generals Department, said the owner had agreed to pay the claim in full.

She said an interim report on environmental damage had also been submitted to the ships owner, and that a separate claim for that will be presented after the final report is complete.

The owners agreement to pay came nearly a week after a Sri Lankan court ordered the ships Greek captain to appear in court on September 28 after the attorney general directed police to name him a suspect in the fire. Experts have been working to salvage the ship, which remains in Sri Lankan waters.

The tanker was transporting crude oil from the port of Mina Al Ahmadi in Kuwait to the Indian port of Paradip, where the state-owned Indian Oil Corp. has a refinery. The initial fire killed one Filipino crew member and injured another, while 21 other crew members escaped uninjured.


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