Sri Lanka to get $1.84m from the fire-hit oil ship owner


FILE PHOTO: 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, is seen after a fire broke out off east coast of Sri Lanka September 4, 2020. Sri Lankan Airforce media/Handout via REUTERS
FILE PHOTO: 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, is seen after a fire broke out off east coast of Sri Lanka September 4, 2020. Sri Lankan Airforce media/Handout via REUTERS

SRI LANKA to get $1.84 million for its efforts to douse fire on the crude oil ship early this month.



The owners of the New Diamond supertanker, which caught fire with a cargo of two million barrels of oil aboard, will pay the amount to Sri Lanka for its help in extinguishing the blaze and averting disaster.

The interim claim is for services provided by the Sri Lankan navy, air force, ports authority and Marine Environment Protection Authority (MEPA) after the fire on September 3 to 15, said Nishara Jayaratne, coordination officer of Sri Lanka’s attorney general.

Insurers of the vessel West of England will settle the bill, MEPA chairperson Dharshani Lahandapura said.



The New Diamond, loaded with Kuwaiti oil, is chartered by Indian Oil Corp and is currently 66 nautical miles (122 kilometres) from Batticaloa on Sri Lanka’s east coast.

MEPA has allowed the release of 20 crew members while one injured sailor is undergoing treatment in a private hospital in Sri Lanka, Lahandapura said.

The captain has not been allowed to leave the country as he is going through legal proceedings, she said.



Greece-based Porto Emporios Shipping Inc is the registered owner of the 20-year old Panama-flagged very large crude carrier, Refinitiv data showed.

Lahandapura said the interim claim does not include damages for the spill of marine oil. While it did leak fuel, its crude oil cargo remained intact.

The ship’s managers, New Shipping Ltd, have appointed SMIT Singapore Pte Ltd to lead salvage operations.