Retained ships set for arbitration

ISLAMABAD - Anatolia News Agency

The 232 MW power ship ‘Kaya Bey’ is seen docked at Karachi Port Trust in this file photo. AFP photo

Turkey’s Karadeniz Energy Group (Karkey) will apply to international arbitration regarding its energy ships, “Kaya Bey” and “Ali Can Bey,” which were retained off the shore of Karachi by court order.

An official from the Pakistan National Finance Office (NAB) told Anatolia news agency yesterday that Karkey had informed NAB that it would go to international arbitration due to the high penalty incurred to release the ships. Karkey told the agency last week that it was preparing to apply to international arbitration.

Karkey and NAB annulled an energy agreement at the end of October, after which the Pakistani authorities decided that the ships had to leave after paying back the unused amount of the deposit given by the Pakistani government. After a deputy from the main opposition party applied to Pakistan’s Federal High Court and lodged a complaint against Karkey claiming it had sustained a loss from the government, the court ordered the seizure of the ships. NAB is demanding $120 million in fines from Karkey.