UPDATE 3-Somali pirates free Saudi supertanker

(Adds seizure of three Indian seafarers)

By Abdi Sheikh

MOGADISHU, Jan 9 (Reuters) - Somali pirates freed a Saudi supertanker seized in the world's biggest ship hijacking for a $3 million ransom on Friday.

The capture of the Sirius Star and its $100 million cargo of crude in November drew attention to a surge in piracy off Somalia that has brought global navies rushing to protect one of the world's most important shipping lanes.

Farah Osman, an associate of the pirates speaking to Reuters from Haradheere port near where the tanker was held, said the gang had wanted more money but finally agreed $3 million. "The pirates are now arguing about division of the money," he said.

A regional maritime group confirmed the release.

"The last batch of gunmen have disembarked from the Sirius Star. She is now steaming out to safe waters," said Andrew Mwangura, of the East African Seafarers Assistance programme, based in the Kenyan port of Mombasa.

There was no immediate comment from Vela International, the Dubai-based shipping arm of Saudi Aramco, which operates the ship. It was heading south, possibly to anchor off Mombasa for resupplying or to go on to South Africa, Mwangura said.

The Sirius Star was captured in November with 25 crew members, 450 nautical miles southeast of Kenya in the boldest seizure to date by Somali pirates.