We are deeply pained to advise you that our managed Panama Flag vessel M. V. Ocean Seraya having 21 crew members of Indian nationality, including one supernumerary, commanded by Capt. R. S. Sharma was involved in a grounding incident at Oyster Rock, near Karwar Port at about 0330 hrs LT on 30 May 2006, while she was anchored in the roads in ballast waiting to load cargo for past 4 days.

According to Master vessel experienced sudden cyclonic weather at 0200 IST on 30th May, which was not predicted by local authorities and vessel dragged anchor. Engines were used but strong gust of up to 50 kts was experienced and vessel ran aground hard on starboard side.

2/O Azeem Mansoor Juvale

Vessel breached hull in Engine room and started taking in water. She listed up to 16 degrees to port side. An Indian Coast Guard helicopter arrived at the vessel at 0930 hrs LT and had rescued 20 crew members by 1140 hrs LT. Second officer Juvale, who reportedly abandoned the ship before the commencement of the rescue operation, was found missing and all efforts to locate him were unsuccessful.

A LOF (Lloyds Open Form) was signed shortly after the initial grounding with internationally renowned salvors- Smit Salvage. A high level site team of three senior managers from ESM was on the site within 12 hours of the incident. Our Managing Director joined them shortly afterwards and stayed for next 25 days at Karwar. They were instrumental in closely liaising with the salvors and authorities regarding all the issues concerning oil pollution prevention, crew welfare and salvage and handled the tough situation with calm and patience. Local officials were quite appreciative of the concern and commitment showed by ESM.

The pumping of the bunker oil from the vessel had successfully started on 5th June and by June 22, all the ship's bunker fuel had been removed, including the final skimming of oil traces in the cargo holds and engine room and floating on the surface of the water.

Inspection of the three nearby beaches by the scientist from ITOPF had confirmed the area free of any major contamination except an occasional tar ball. However, as per newspaper reports

in India, such tar balls were also commonly sighted in these beaches in the monsoon season. The fishing activities reported to have continued undisturbed and the tests of the seawater conducted by the Pollution Control Board of India were said to have not detected any oil pollution in the surrounding area. Local experts also clarified previous, incorrect, reports concerning prawn stocks from ponds in Makheri, Karwar. The experts confirmed that the reported deaths of such stocks were not caused by oil leakage from the Ocean Seraya, but from white spot disease. Local Authorities confirmed that no oil ever reached the prawn ponds and that no traces of oil were found in the samples collected. Indeed it was reported that the fish and prawn samples tested were found to be healthy.

Luggage and personal belongings of the crew in the ill-fated vessel were retrieved and returned to the respective owners. Ratings and officers were released after investigation by authorities and went home on 10th June and 15th June respectively.

We wish to thank all those involved in the demanding rescue operation that carried out safe evacuation of the crewmembers under very difficult circumstances on May 30th.

We would like to take this opportunity to also thank the local authorities, Coast Guards and the DG Shipping for their cooperation and assistance in dealing with the unfortunate incident.