Fire-hit supertanker's owner agrees to pay USD 1.8 million to Sri Lanka in damages

Owners of oil supertanker MT New Diamond, that caught fire near Sri Lanka in the first week of September have agreed to pay USD 1.84 million to Sri Lanka for help in extinguishing fire. This is an interim claim and does not include damages for fuel leak into the sea.

The claim was made for the services provided by Sri Lankan Navy, port authority, Sri Lankan Air Force and Marine Environment Protection Authority (MEPA).

MT New Diamond was ferrying Kuwaiti Oil to Indian port of Paradip. The tanker was chartered by Indian Oil Corporation. The tanker caught fire on September 3 after an explosion in its engine room.

The fire was doused by joint efforts of Indian Navy, Sri Lankan Navy, Air Force and Indian Coast Guard.

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Sri Lankan Marine Environment Protection Authority's (MEPA) Chairperson Dharshani Lahandapura said that insurers of the vessel West of England will settle the bill.

New Diamond is currently 122 kilometres (66 nautical miles) away 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.

(With Reuters inputs)