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The Latest: Shell compensates victims of Pakistani oil fire

Posted July 12

— The Latest on efforts to compensate the victims of an oil tanker fire in Pakistan last month that killed 215 people (all times local):

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6:30 p.m.

A subsidiary of Royal Dutch Shell says it has made full payments in compensation and damages to the victims of an oil tanker fire last month that killed 215 people.

Shell says it handed the funds to Pakistan's oil and gas regulatory body to be distributed among the victims.

Wednesday's statement from Shell Pakistan Limited says the money was paid to Pakistan's Oil and Gas Regulatory Authority. It doesn't specify the exact amount paid to OGRA.

However, Imran Ghazanvi, a spokesman for OGRA, told The Associated Press that they received about $2.4 million from Shell and the amount included the fine imposed on Shell and compensation for victims of the oil tanker's crash.

The latest development came after OGRA warned an action against Shell if it did not fully implement its order.

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4:30 p.m.

A subsidiary of Royal Dutch Shell says it will pay compensation to the victims of an oil tanker fire in Pakistan last month that killed 215 people, without specifying the exact amount.

After the fuel tanker crashed and started leaking on the side of a highway, hundreds of people from a nearby village rushed to the scene to collect the fuel. They were engulfed in flames when the spill ignited.

Pakistan's oil and gas regulator wants Shell to pay $2.4 million, or $9,500 to the heirs of each person killed.

Shell Pakistan Limited said it was in discussions with Pakistani authorities over the "means by which this financial assistance can appropriately reach the injured and the families who have lost their loved ones."

Its statement came after Pakistan threatened to take legal action if the company did not provide compensation.

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12:30 p.m.

Pakistan says it is considering legal action against a subsidiary of Royal Dutch Shell after the company refused to pay $2.4 million in compensation to the victims of a tanker fire last month that killed 215 people.

Imran Ghazanvi, a spokesman for Pakistan's oil and gas regulator, said Wednesday that a probe found the company responsible for the disaster. After the fuel tanker crashed and started leaking, hundreds of people from a nearby village who had rushed to collect the fuel were engulfed in flames when it ignited.

The regulator says the tanker was not fit to transport oil and that the driver's license was invalid.

Shell Pakistan Limited has paid a $96,000 fine but says it reserves the right to contest it once it has completed its own investigation.

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