The Saudis have reportedly paid a $3 million ransom for their supertanker that’s been held by Somali pirates for the last several months:
MOGADISHU, Somalia — A Saudi-owned supertanker held by pirates off the coast of Somalia for two months has been released for a ransom of $3 million, according to one of the pirates and residents of Xarardheere, a pirate town on the Somali coast near where the tanker was being held.
The supertanker, about the length of an American Nimitz class aircraft carrier, was the largest ship known to have been seized by pirates, and it was fully loaded with two million barrels of oil.
The pirates were due to leave the ship after the money, paid by the ship’s owners, was received by the pirates on Friday, according to the pirates and residents, who later said that the ship had moved away from the coast where it had been anchored since November.
This is actually a pretty good deal for the Saudis. It’s certainly better than the $25 million the pirates were originally asking and the vessel alone is probably worth that.
However, if you subsidize something, you’ll get more of it.