Hebei Spirit oil spill damage costs grow

The estimated cost of damages caused by South Korea's worst oil spill may reach as high as over 573.5 billion won (US$554 million), a local government official said.

Around 12,000 tons of crude oil spilled into the west sea following a collision between an oil tanker owned by the Hong Kong-registered Hebei Spirit Shipping Co. and a barge owned by Samsung Heavy Industries Co. last December. The oil spill occurred in waters off Taean County, South Chungcheong Province, blackening beaches and fish farms along the west coast. The barge, which was carrying a crane, separated from its two tugboats and collided with the tanker. Officials at South Chungcheong Province said the total amount of losses arising from the spill is currently estimated at a maximum figure of 573.5 billion won, quoting Willem Oosterveen, director of the International Oil Pollution Compensation Funds (IOPC Funds). The newly estimated loss has increased 149.5 billion won from the amount originally released by the IOPC Funds in March. "The increase came as business activities (in Taean) have yet to normalize, and with consumer trust in Taean's seafood products having decreased, there are likely to be less visitors," said an official.

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