Saudi Ship Owner to Pay $3 Million Ransom

The owner of a Saudi ship, which has been hijacked by Somali pirates, reported that the insurance company has agreed to pay a ransom of $20 million to win the release of the ship and its 14-member crew. Twenty million was the initial amount demanded by pirates, however, after negotiations the ransom was brought down to $3 million.

The al-Nisr al-Saudi ship has 13 Sri Lankans and a Greek on board.

The International Bunkering Company (IBC) had received a preliminary approval from Saudi Arabian Monetary Agency to pay the ransom. They are now waiting for the Interior Ministry's approval.

The ship owner requested Second Deputy Prime Minister and Interior Minister Prince Naif to intervene in the matter to win the release of the ship and crew as quickly as possible.

The crew has reportedly been tortured and threatened by the pirates, that they will be killed if ransom was not paid.

Ship owner, IBC, has suffered a loss of 30 million Saudi riyal as a result of the hijack, which took place in the Gulf of Aden five months ago while the ship was returning to the Saudi costal city Jeddah, from Japan.

The 5,136-ton ship was not carrying any oil at the time of hijacking, which took place while the ship was on its maiden voyage.

The International Maritime Organization has asked the ship owner to explain the prolonged difficulties being faced by the ship's crew in the light of complaints lodged by Sri Lankan and Greek authorities.

It is common for ship owners and governments to use negotiators to bring the demanded ransoms. Currently the largest recorded ransom was $6m, that secured the release of the hijacked Greek VLCC Maran Centaurus back in January.