The technical managers of Dubai Star, a Panamanian-flagged oil tanker that caused a major oil spill in the San Fransisco Bay area on Friday, said they have the insurance to cover any liability.

Ram Moorthy, General Manager of Pioneer Ship Management Services Company, said: "We are handling the situation on the ground and everything is under control now. Pioneer Ship Management Services is a local company representing the Panamanian shipping firm. Every action has been taken and we have P&I insurance."

The insurance provides protection to the ship owners and charters against third party claims. Such insurance provide protection against environmental pollution too.

He refused to divulge the ownership of Dubai Star, which is likely to face investigation and damages following the spill.

Moorthy said the company has appointed a media consultant to release more information about the accident.

A statement issued by Pioneer said: "Pioneer Ship Management Services, technical managers of the tanker Dubai Star (50,561 dwt, double hull, built 2007) regret to report that a spill during bunkering operations near anchorage #9 in San Francisco Bay at approximately 0615 local time."

It said operations were immediately stopped and emergency response and containment procedures were started. The US Coast Guard, State and local officials were notified. The company's spill response contractor, O'Briens Response Management, has been contacted and is mobilising clean-up resources to contain and recover the spilled oil.

"The amount of oil spilled has not been determined and the US Coast Guard has begun an investigation with Pioneer's and the bunker suppliers participation." It said further details would be released as they become available. US Coast Guard, meanwhile, said from accident site and aerial assessments and measurements of the vessel's fuel capacity, the total spill is estimated between 400-800 gallons.

Shipping industry sources said the tanker owner or the insurance company would have to pay for the clean-up operations. Two companies – National Response Corp and Marine Spill Response Corp – are appointed to control the oil spill.

Shipping industry sources said the tanker leak happened in the US territorial waters due to a fuel pump rupture. The clean-up operations on November 1 consisted of skimming and booming operations. Shoreline monitors will be conducting reconnaissance operations on water and on area beaches. Aerial assessments will also be conducted to determine the extent and location of any remaining oil.

Dubai Star has been moved from the accident spot to the nearest port.

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