Potential Odyssey Marine Shipwreck Targets

August 16, 2012 — Leave a comment

As this year’s recovery season winds down, noted exploration company Odyssey Marine is wrapping up two deep water recoveries (the SS Gairsoppa and SS Mantola) and currently on hold with the excavation of HMS Victory.  The 2012 season marked several firsts for Odyssey – the completion of a shipwreck salvage under government contract, the validation of their deepwater recovery methods and the beginnings of legitimacy for their role in “academic” archaeology with their efforts on the HMS Victory. What lies ahead for Odyssey is a question of much debate.  Below are five of the most discussed targets for Odyssey along with pros and cons for each.

1.  Merchant Royal – widely believed to be the target of Odyssey’s “Atlas” search, the Merchant Royal went down in a storm off Great Britain in 1641 with a cargo of gold and silver valued around ~1 billion in current dollars. This is the Holy Grail of shipwrecks and would be an incredible find both for the monetary and publicity windfall. Apart from the difficulty involved in locating the wreck, there are no significant cons to recovering the Merchant Royal.

2.  Prins Frederik – sunk in 1890 after a collision with the Marpessa in the Bay of Biscay, this Dutch mail steamer carried 400,000 silver rijksdaalders in its bullion room. Disputes over the actual location of the ship (and thus who was to blame for the collision) have created a wide search area and significantly affect the depth of water it could be located in – 500 feet if where the captain of the Prins Frederik claimed or 6,000 feet if where the captain of the Marpessa claimed. A British company claimed to have found the wreck in shallow water in 1994 which could generate legal issues for Odyssey if it is indeed the Prins Frederik. Odyssey could also face legal claims from insurers who paid out on claims or the Dutch government as the cargo was for payment of colonial forces in Indonesia. The Prins Frederik would be an excellent target for an arrangement similar to the Gairsoppa and Mantola where the Dutch government receives a portion of the proceeds after expenses.

3.  I-52 – re-discovered in 1995 by Paul Tidwell, the I-52 was sunk by American naval forces in 1944 while en route from Japan to Nazi Germany. The I-52 was carrying 2.2 tons of gold and now sits in 17,000 feet of water. While Odyssey’s deepwater recovery methods would enable recovery of the wreck, apart from a multi-party agreement on salvage rights between Tidwell, the Japanese government and Odyssey no recovery is possible. Tidwell has also stated he is pursuing recovery of the sub and it is doubtful Odyssey would be brought in on the deal.

4.  Port Nicholson – a British freighter loaded with $3 billion in platinum, the Port Nicholson was torpedoed off the coast of Massachusetts in 1942 and was located in 2008 by Sub Sea Research.  Sub Sea Research gained title to the ship in 2009 and planned recovery in 2012. No word has emerged on whether or not the group has been successful in their salvage and there are doubts as to whether the platinum even exists onboard.  If Sub Sea is unable to recover the wreck due to a lack of expertise or funding, then a collaboration with Odyssey would benefit both parties and be the most valuable recovery yet, surpassing even Odyssey’s Black Swan recovery (and subsequent loss).

5.  Bonhomme Richard – John Paul Jones’ famous flagship went down after his epic battle with HMS Serapis. The past few years have seen renewed efforts to find the ship, but any recovery would be limited by the doctrine of sovereign immunity. Because the Bonhomme Richard was an American warship it cannot be salvaged without the permission of the US government. An arrangement with the US government similar to that of the HMS Victory one is a possibility, but doubtful because the upside isn’t nearly as high as it is for other wrecks.

There are dozens of other wrecks Odyssey could be pursuing – the company claims to have dozens of high value shipwreck targets in its proprietary database. Based on Odyssey’s stated business model of pursuing high value targets with easily ascertainable legal ownership and inaccessible to normal salvors, Odyssey will most likely pursue deepwater commodity shipwrecks where the cargo can be quickly monetized and not the storied Spanish Galleons of treasure hunting lore.

Disclosure: I am an Odyssey Marine shareholder.

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