Gulf Navigation Holding signs 10-year charter agreements worth Dh1 billion for 2 VLCC New Buildings
Dubai Gulf Navigation Holding PJSC, a leading shipowner and maritime services company in the region, yesterday announced the signing of a contract with Zhoushan Jinhaiwan Shipyard Co LTD of Shanghai to build two very large crude carriers (VLCC) for delivery in December 2012 and May 2013.
The sister ships are 320,000 deadweight tonnes and have a capacity of more than two million crude oil barrels each.
Simultaneously, Gulf Navigation Holding signed two agreements with Grand China Logistics Holding (Group) Co Ltd to time charter the vessels for 10 years each upon delivery.
The charter agreement has a profit-sharing mechanism once a ceiling is reached, and is worth approximately Dh1.05 billion.
The new vessels will join the Gulf Eyadah which was delivered in January 2011, and Gulf Sheba to increase Gulf Navigation's VLCC fleet to four and its capacity to eight million barrels.
The company plans to expand the VLCC fleet to nine by 2015 as part of the five-year shareholder-value improvement strategy which started this year.
The plan also calls for expansion of the chemical fleet, entry into the Aframax and offshore markets and listing of subsidiaries in international stock exchanges.
Company results are expected to reflect such key achievements in profitability as they occur.
The signing of the VLCC building and charter contracts with major Chinese groups mark a strong entry of Gulf Navigation Holding into the Chinese market, which is witnessing a huge surge in oil consumption.
