International tanker owner Nordic American Tankers Ltd (NAT) has announced that it has reached an agreement with Asyad Shipping Company, a subsidiary of wholly Omani government-owned Asyad Group, covering the delivery of a pair of under-construction crude carriers on six-year-long time charters.
NAT, a Bermuda-registered company listed on the New York Stock Exchange (NYSE), said the two Suezmax-size tankers, currently nearing completion at a South Korean shipyard, will be handed over to Asyad Shipping (earlier known as Oman Shipping Company) during May and June this year.
A statement issued by NAT quoted Dr Ibrahim al Nadhairi, CEO of Asyad Shipping & Drydock Services, as saying that the new tankers will support Asyad Shipping’s crude transportation requirements as well as strengthen the positioning of the Sultanate of Oman as a global logistics hub.
“We are pleased to have entered into these contracts with such a well reputed company as NAT, listed on the New York Stock exchange. Further projects may also be developed between our respective companies. From ASYAD Shipping perspective this will be a further expansion of the crude transportation verticals. This new partnership will leverage Asyad shipping readiness to evolve its leading position in shipping and logistics services. Moreover, it will support its operation capabilities to secure more business opportunities for Oman and make it a global logistics hub,” he stated.
Although smaller in capacity than Very Large Crude Carriers (VLCCs), Suezmax-sized tankers are the largest of their kind that can transit the Suez Canal in their fully laden state. Capacities range from 120,000 – 180,000 DWT.
Upon the induction of the newbuildings, now in the final stages of their construction at the shipyard of Samsung Heavy Industries, the tankers will join the well-diversified fleet of Asyad Shipping.
The wholly government-owned shipping line presently has around 70 ships either under ownership and operation, comprising a mix of Very Large Crude Carriers (VLCCs), Product Tankers, Chemical Tankers, LPG Carriers Very Large Ore Carriers (VLOCs), Bulk Carriers, multi-purpose vessels and a containership as well. The company plays a dominant role in supporting the maritime transportation requirements of the country’s vital hydrocarbon, petrochemical, mining, and metallurgical industries.
For Nordic American Tankers, the six-year time charters represent an important foray into the shipping market of the Middle East. “Our business is expanding in the Middle East, which is an important area for our operations. We regard this cooperation with Oman interests as a substantial step forward to cementing and building out our position in the area. This may only be the beginning,” said Herbjorn Hansson, President and CEO of Nordic American Tankers.
“The time charter rates concluded will secure a stable revenue stream over the six years, and generate an aggregate revenue of more than $100 million during these charters. The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60 percent of the original price of the vessels,” the company added in its statement.
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