WEST GERMAN STEEL MILL BUYS MEGA BORG TANKER FOR SCRAP

July 23, 1990

An unidentified West German steel mill has agreed to pay about $2.4 million to acquire the stricken Mega Borg tanker. The Norwegian tanker, which caught fire and spilled oil in the Gulf of Mexico after an explosion ripped through its pump room June 8 off Galveston, Tex., will be towed to Karachi to be cut up for scrap after the purchase, scheduled to be effective July 20. Aylesford Ltd., a ship broker in Gibraltar, arranged the sale but would not disclose the buyer's identity, said Houston

An unidentified West German steel mill has agreed to pay about $2.4 million to acquire the stricken Mega Borg tanker.

The Norwegian tanker, which caught fire and spilled oil in the Gulf of Mexico after an explosion ripped through its pump room June 8 off Galveston, Tex., will be towed to Karachi to be cut up for scrap after the purchase, scheduled to be effective July 20.

Aylesford Ltd., a ship broker in Gibraltar, arranged the sale but would not disclose the buyer's identity, said Houston attorney Bob Klawetter.

Klawetter represents Mega Borg's majority owner, the Norwegian investment partnership K.S. Mega Borg II. He also represents Mega Borg operator Mosvolds Rederi, Farsund, Norway.

Klawetter estimated it will take about 2 months to tow Mega Borg to Karachi, a major scrap processing center.

In the meantime, Smit American Salvage Co. has crews and ships standing by the Mega Borg off Galveston to ensure that no further problems developed.

Klawetter said Mega Borg's engine room had not been cleared of toxic gases. A search of the engine room is to be undertaken before the new owner takes possession.

An investigation by the Norwegian government has not determined what caused the explosion.