Gulf Navigation to buy supertanker
Vessel, expected to be delivered next month, has a capacity to carry 2m barrels of oil
Dubai: The flow of orders in the region's shipping industry is starting to come with more regularity after Gulf Navigation Holding confirmed its acquisition of a very large crude carrier (VLCC).
The vessel, built in 2006 and with a 300,000 deadweight tonne capacity, can carry up to two million barrels of oil.
The Gulf Eyadah will join the operator's other VLCC, Gulf Sheba, which was delivered in late 2007.
As the case for the first one, the new vessel will be technically managed by Gulf-Stolt Ship Management Company of Dubai, GulfNav's joint venture with Norwegian ship owner Stolt Neilsen, a company spokesman said.
Fleet modernisation
"Gulf Eyadah is dear to us, not only because of the name which commemorates the contributions of our late friend and board member Mohammad Al Eyadah, but also because it inaugurates our strategic plan for expansion in the VLCC market," said Abdullah Al Shuraim, chairman of Gulf Navigation Holding.
"The acquisition is also the beginning of our fleet modernisation scheme."
The ship is expected to be delivered next month and will be chartered the same day to an international firm for two years at what will be an attractive rate, a Gulf Navigation Holding spokesman said in a statement.
The financing agreement for the new order was in place with a major European bank, a company spokesman said.
Currently, Gulf Navigation Holding operates 11 specialised subsidiaries and owns 15 tankers in addition to four crew boats.
"This works out to a total carrying capacity of around 1.3 million dwt (dead weight tonnes).
"This is an important move for us on two fronts; generating immediate and better revenues, thus positive impact on our results; and increasing our carriage capacity to serve new customers," said Per Wistoft, CEO of Gulf Navigation Holding.
