You receieve this quest from Pedsipec, who is in the Boardroom of Gods.
He says you must awaken Habren who lies under the Lydney Sands.
He says when Taran attacked Habren, she was wearing many rich jewels, and that the Formorian pirates have been looking for her prison to steal those jewels.
He says the pirates have figured out where she rests.
Find and talk the pirates and you might be able to find Habren.
The pirates were last seen off the Bay of Bald Rocks in the far Southeast.
You will receieve the Find out Information quest.