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Non-Tech : Shipping - Oil & Gas Tankers, Dry cargo, LNG
GLNG 38.48-0.5%Dec 9 3:59 PM EST

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From: Julius Wong11/23/2008 9:09:56 AM
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Somali Pirates Move Saudi Tanker as Islamists Warn of Attacks
By Hamsa Omar and Nasreen Seria

Nov. 23 (Bloomberg) -- Somali pirates who hijacked a Saudi Arabian supertanker moved the vessel from its location at the port city of Harardhere, after Islamist militias threatened to attack them and rescue the ship, a tribal elder said.

The Islamic Courts Union warned the pirates to leave Harardhere, Ali Elmi, a local elder in the town, said in a phone interview today. The tanker was taken out to sea and its destination isn’t clear, he said. Al-Shabaab, a separate Islamist group, also said it would attack the pirates if they don’t free the ship.

Somali pirates were holding the Sirius Star, laden with 2 million barrels of oil worth about $110 million, near Harardhere, which is controlled by the Islamists. The vessel was hijacked with its 25-strong crew on Nov. 15, about 420 nautical miles (833 kilometers) off Somalia. The pirates demand a $25 million ransom.

The ICU warned yesterday that it will take action against pirates responsible for the “major crime” of seizing the supertanker, which belongs to Saudi Arabia’s state-owned shipping line, Vela International Marine Ltd.

Al-Shabaab told the pirates holding the Saudi tanker to release it or face armed conflict, Sheikh Abdulaahi Osman, a commander of the group in Harardhere, said by phone today.

“Saudi is a Muslim country and it is very big crime to hold Muslim property,” Osman said. “I warned again and again those who hold the ship must free it unconditionally or armed conflict should be the solution. If they don’t free the ship, we will rescue it by force.”

Since January, at least 91 vessels have been attacked in the Gulf of Aden, an area almost twice the size of Alaska, flanked by Yemen and Somalia. The hijacking of the Saudi ship was the most brazen assault yet, as it was the largest seized and was the farthest from the coast when attacked.

Harardhere is in Somalia’s semi-autonomous northern Puntland region. The country is in its 18th year of civil war and hasn’t had a functioning central administration since the ouster of former dictator Mohammed Siad Barre in 1991. Ethiopian troops invaded Somalia in December 2006 to help the United Nations- backed government oust the Islamic Courts Union militia from southern and central parts of the country.

bloomberg.com
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