Hebei Spirit

Republic of Korea, 7 December 2007

Report updated 4 March 2008

 

What has happened?

On 7 December 2007, the Hong Kong registered tanker Hebei Spirit (146 848 GT), laden with
209 000 tonnes of crude oil, was struck by the crane barge Samsung N o 1, whilst at anchor about five miles off Taean on the West Coast of the Republic of Korea. About 10 500 tonnes of crude oil escaped into the sea from the Hebei Spirit.

Initially, contamination was confined largely to Taean County, Chungchongnam-Do Province, however, over a period of several weeks, mainland shorelines and islands further south became contaminated with the result that much of the Republic of Korea's western coast has been affected to varying degrees.

Clean-up operations were carried out at sea and are still continuing along the shoreline, where more than 375 kilometres has been affected. Removal of bulk oil has nearly been completed but secondary clean-up operations are expected to continue for some months.

The 1992 Fund together with the shipowner's insurer, the Skuld P&I Club, have appointed a team of Korean and international surveyors to monitor the clean-up operations and assess the potential impact of the pollution on fisheries, mariculture and tourism activities.

The compensation system: who pays?

The Republic of Korea is a party to the 1992 Civil Liability Convention (1992 CLC) and the 1992 Fund Convention, which form part of Korean Law. Under these instruments, compensation is available to any individual, business, private organisation or public body which has suffered pollution damage as a result of the Hebei Spirit incident. The Republic of Korea is not a Party to the Supplementary Fund Protocol.

Compensation is payable for expenses actually incurred and for loss or damage actually suffered as a result of the oil pollution. All claims must be properly supported by documentation - a well-substantiated claim can be processed much more quickly than one which is not.

Approximately £72 million (89.77 million SDR) compensation is available from the shipowner's insurer, the Skuld P&I Club, under the 1992 Civil Liability Convention. Additional compensation of up to approximately £92 million (113.23 million SDR) is available from the 1992 Fund. In other words, a total of £164 million (203 million SDR) is available.

Agreement has already been reached between the Skuld P&I Club and the Korean Government for the settlement of hardship payments of some £6 million to local fishing communities engaged in the clean up.

Claims Office

The 1992 Fund and the Skuld Club have established a claims office in Seoul ('the Hebei Spirit Centre') to facilitate the prompt handling of claims for compensation and to assist claimants in the presentation of their claims. Claimants are invited to contact the Centre to obtain an Information Package providing guidance on the submission of claims.

The contact details for the Centre are:

Hebei Spirit Centre
K.P.O. Box 2242
Seoul 110 110
Telephone: (+82) (02) 767-2693
(weekdays from 1:00pm to 5:00pm only, excluding public holidays)
Fax: (+82) (02) 767-2694
Email: Hebei.Spirit@pandi-centre.com

Claims situation

As at 25 February 2008, 64 claims for compensation totalling Won 33 944.4 million (£18.3 million) have been submitted as a result of the incident. An interim assessment of forty-five of these claims has been made at Won 10 735 million (£5.7 million) and the Skuld Club has made interim hardship payments in respect of 39 claims for Won 9 382.3 million (£5 million).

Since the Hebei Spirit Centre in Seoul became fully operational on 22 January 2008, more than one hundred prospective claimants have contacted the office and have communicated their intention to submit a claim in the future. Further claims are therefore expected.