The sound of oil. Photo: Petroleum Geo-Services (PGS)/FIS

Shipowner Receives Over 3.5 Million NOK in Compensation for 'Seismic Fishing Disruption'

NORWAY
Wednesday, December 11, 2024, 04:40 (GMT + 9)

Lending Rederi AS, a shipping company based in Vestland, Norway, was awarded 3.5 million NOK in compensation after seismic activity hindered their fishing operations in August and September 2024, according to the Norwegian Fishermen's Association (Norges Fiskarlag)

Linne Lending, representing the company, expressed satisfaction with the outcome, emphasizing the importance of the state compensation scheme in addressing such disruptions.

Linne Lending (inset) is happy on behalf of both herself and the crew that the shipping company has now been successful in its application for compensation for being obstructed at sea. Photo: Lending Shipping Company/Fiskarlaget

Compensation Claim Details

The company sought 4.28 million NOK to cover losses from reduced cod and saithe catches during the affected period. Calculations were based on last year's fishing performance and current prices, as well as additional costs, such as 325,000 NOK in extra fuel, incurred while searching for fish in alternative areas. The compensation amount was ultimately determined to reflect lost quota volumes, including bycatch.

Desperation and Previous Experiences

The disruption was particularly challenging for Lending Rederi, which operates the vessel "Sulehav" with a six-member crew. Similar seismic interference was experienced in 2022. This time, the company sought advice from the Norwegian Fishermen’s Association and carefully documented the situation, which contributed to the successful compensation outcome.

F/V 'Sulehav'

Linne Lending highlighted the critical role of the association’s legal assistance, noting that the support showcased the value of membership.

Distribution of Compensation

The shipping company decided to allocate the compensation among the crew as if normal fishing operations had occurred. This approach aligns with the Norwegian Fishermen’s Agreement, which considers compensation for catch losses as part of the gross catch.

Incident Summary

The 35-meter-long "Sulehav" was fishing on the Patch and Coral banks when the seismic vessel "North Barents" began operations in the area. Despite requests to relocate, the seismic vessel continued to operate nearby, disrupting fishing activity. Following the interference, "Sulehav" experienced significantly reduced catches.

Seismisk undersøkelse. Photo: Sutori

Legal Framework and Decision

Compensation claims are governed by the Petroleum Act, which mandates state compensation if petroleum activities significantly hinder fishing. In this case, the Compensation Board relied on findings from the Institute of Marine Research, which determined a 14-day scare effect within a 20-nautical-mile radius of seismic activity.

The Compensation Board acknowledged that "Sulehav" had a proven fishing presence in the area and calculated the financial loss using general tort law principles. The final amount included 4.5% interest from the application date, September 27.

Broader Implications

This case highlights tensions between Norway's fishing and petroleum industries, both key economic drivers. Few shipping companies pursue compensation claims for seismic disruptions, and fewer succeed. In 2024, only two out of five claims were approved.

Norwegian Petroleum Act. ==>

Of the five cases processed by the Compensation Board I this year, the "Sulehav" case resulted in the highest payout. Another case, involving a claim for 1.5 million NOK, was awarded only 300,000 NOK.

Industry Challenges

Lending Rederi called for greater accountability from seismic operators, suggesting they, rather than the state, should bear the cost of compensation. Linne Lending pointed out that seismic companies often fail to respect fishermen’s rights at sea, undermining the industry’s trust and cooperation.

This case underscores the importance of balancing the needs of Norway’s two largest industries and ensuring fair treatment for affected parties.

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