Markets- BP signs sale and leaseback deal

Oct 26 2015

Chinese leasing company, ICBC Financial Leasing, has signed an $869 mill agreement with BP Shipping.

ICBC will buy BP Shipping’s 18 South Korean newbuildings and lease them back to the oil major for 10 years.

This deal was signed during Chinese President Xi Jinping’s visit to the UK this week.  

No details of the vessels were revealed.

ICBC Financial Leasing, a subsidiary of the Industrial and Commercial Bank of China (ICBC), currently has a portfolio of more than 200 vessels in all sectors, valued at around $7 bill.

Navig8 Chemical Tankers has confirmed orders for four 49,000 dwt IMO2 eco-design, Interline-coated chemical tankers to be built at STX Offshore & Shipbuilding.

The company also said that it has secured options to purchase six additional sister vessels from STX.

"We are very pleased to add these modern eco-design vessels to our current newbuilding fleet," said Nicolas Busch, president and CEO of Navig8 Chemical Tankers. "Our best-in-class chemical tanker fleet of 36 large, fuel-efficient vessels is designed to benefit from the continuing shift to long-haul chemical trades driven by significant investment in US and Middle East chemical export projects."

The vessels will be built to the same technical specifications as the company's earlier orders at STX, including the capability to transport methanol and other specialty cargoes.

The four new vessels are expected to be delivered by mid-2017 and will be deployed in the Chronos8 pool, managed by the Navig8 Group.

Chemical tanker owner Swiss-Canadian Maritime has ordered three 21,800 dwt chemical tankers from Triyards Holdings.

The three tankers are due for delivery in 2017, and will be managed by  Swiss-based ABC Maritime.

These new IMO2, double-hull, ice-classed tankers will have a storage capacity of 24,000 cu m and will be specially adapted for operating in colder climates.

Swiss-Canadian Maritime Chairman, Hans Tanner, said:“We have awarded this contract to TRIYARDS based on their strong engineering and fabrication expertise, and also taking into account their excellent track record of building specialised ships for global clients. With these three newbuilds of chemical tankers, we are poised to strengthen our service offerings to our customers.”

The steel for the first of the three tankers was cut at Triyards shipyard in Ho Chi Minh City, Vietnam, on 25th September.

The vessels are to be named ‘SCML Toronto’, ‘SCML Montreal’ and ‘SCML Calgary’.

Broking sources reorted that unknown interests had secured two VLCCs at Hyundai backed by time charter to GS Caltex.

Prime Marine was also reported to have to have signed a ‘letter of intent’ for six, plus two, plus two optional LR1s at New Times. The price per vessel was said to be $40-$41 mill and the delivery dates 2017-2018.

A UK-based concern - Elandra - was also said to have ordered two, option two, MRs at Sungdong for $34.5 mill each and for 2017 delivery.

Turning to the LPG segment, Tomza (Mexico) has placed an order for one VLGC at Hyundai Heavy, whilst Hyundai Mipo secured one 38,000 cu m from Tropigas and one plus one optional 22,000 cu m LPG carrier from Global United, a joint venture between Synergy Maritime in India and Nissen Kaiun, Japan.

In the S&P Market, there are persistent rumours that Ridgebury Tankers has put its fleet of 15 vessels up for sale.

The fleet comprises seven Suezmaxes, six MRs and two Aframaxes.

Arctic Securities told TradeWinds that the fleet should have a gross value of $560 - $590 mill and a net asset value of $300- $330 mill.

China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans, has reportedly sold two six to seven year old VLCCs for an aggregate of $133 mill.

The vessels were sold to two Marshall Island-registered companies, Tilos Shipping Corp and Delos Shipping Corp, respectively, according to a CMES filing to the Shanghai Stock Exchange.

Broking sources said that the vessels were the 2009-built ‘New Medal’ and the 2008-built ‘New Founder’ and that the buyers were connected with Navios.

Another VLCC, the 1996-built ‘Barnes’was believed sold to Far East interests for $21 mill, probably for a conversion project.

She was laid up in Malaysian waters as a storage vessel and was thought to be unclassed.

Ancora Investments was believed to have snapped up the 2004-built Suezmax ‘Alan Veliki’ for $36 mill, while Polembros was thought to be behind the purchase of the Aframax sisters ‘TH Sonata’ and TH Symphony’ for a reported $43 mill each.

In the charter markets, two year period charters seem to be the new norm.

There were several reported recently including ExxonMobil, who was said to have fixed the VLCCs ‘Mistral’ for two years at $40,000 per day and the ‘Samco Taiga’, also chartered for two years at $44,000 per day, while BP was thought to have taken the VLCC ‘Bunga Kasturi Lima’ for two years at $42,500 per day. 

Vitol was believed to have fixed the 2015-built Suezmax ‘Front Idun’ for two years at $33,500 per day.

Aframaxes were also in the news with AET rumoured to have secured the 2004-built ‘Al Habibah’ for two years at $25,000 per day. IOC was said to have fixed the 2000-built sisters ‘Jag Lakshita’ and ‘Jag Lateef’ for two years at $29,500 per day, while BP was thought to have taken the LR2 sisters ‘Lady Henrietta’ and ‘Lady Philippos’ for 15 months at $28,250 per day. Another LR2, the 2000-built ‘Moon Safari’ was said to have been fixed to Petrobras for three years at $24,000 per day.

The 2008-built MR ‘Miss Lucy’ was said to have been fixed to STI for two years at $18,000 per day, while Trafigura reportedly fixed the 2003-built Handysize ‘Angi’ for 12 months at $16,500 per day.

Reported as leaving the fleet was the 1991-built Handysize ‘Araevo’ believed sold to Pakistan breakers for $340 per ldt.  

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