Somali pirates have released a Bermuda-registered cargo ship and its 22 crew after almost two months of captivity.

The 11,000 tonne freighter MV Talca was hijacked on March 23 by pirates in two skiffs, 120 miles off the coast of Oman.

The ship was en route from Egypt to Iran with a crew of 20 Sri Lankans, one Syrian and one Filipino, and $4 million worth of Egyptian oranges.

Early yesterday, pirates released the vessel following a reported ransom drop of $2.5 million on Saturday. The pirates are said to have put ashore near the town of Bargaal, Somalia.

One pirate called 'Ali' told Reuters news service: "We received $2.5 million and freed the ship, which has a deadweight of 11,055 tonnes, late last night. It sailed away and the crew was so happy."

Andrew Mwangura, head of the East Africa Seafarers' Assistance Programme, said he understood there had been no "quarrels" during almost two months of negotiations.

Somali pirates were responsible for more than half of all piracy incidents worldwide last year, hunting the busy shipping lanes of the Gulf of Aden and Indian Ocean.