Details are sketchy but it has been confirmed that the MV Blue Star, belonging to Chalong Sea Sports, caught fire and sank in Burmese waters while on a week-long dive trip.
All 20 or so people on board are safe, though they lost their belongings, and a great deal of expensive dive gear is understood to have gone down with the boat.
Pekka Torri, the Finnish principal of Chalong Sea Sports, confirmed that the boat had been lost with all equipment after a fire.
The Phuket News understand that the fire may have been the result of an electrical fault but Mr Torri said he was as yet unable to confirm that this was the case.
He confirmed, however, that all the crew and divers were rescued unharmed, having been taken off the burning vessel by a passing fishing boat. All have now returned to Phuket. He declined to comment further.
The Blue Star was a 28-metre liveaboard vessel with 13 cabins capable of accommodating up to 26 passengers. She had a maximum speed on 10 knots.
On January 29, the dive boat Aladdin, based out of Ranong, was holed and sank in 10 minutes. As with the Blue Star, there were no casualties but the boat was a complete loss.