Ocean Yield: Update On Gas Carriers Under Constructions At Sinopacific

By Vessels

Ocean Yield ASA (Ocean Yield) has three newbuilding LEG (Liquefied Ethylene Gas) carriers of 36,000 cbm. capacity under construction at Sinopacific Offshore & Engineering, China (SOE), scheduled for 15-year "hell and high water" bareboat charters to the Hartmann Group (Hartmann), Germany, with 10-year sub-charters to SABIC Petrochemicals B.V.

SOE filed for receivership of the company in August 2016, following CIMC Enric's decision to withdraw from the acquisition of a majority stake in the shipyard earlier this year.

Ocean Yield: Update On Gas Carriers Under Constructions At Sinopacific

Ocean Yield has, in collaboration with Hartmann, been in negotiations with SOE in order to secure delivery of the vessels and a final agreement has now been reached.

The construction of Vessel no. 1 is going according to plan and the Vessel is expected to be delivered towards the end of October 2016 and will thereafter enter into its long term charter with Hartmann/SABIC.

For Vessel no. 2, Sumec Marine Co. Ltd., will finance and finalise the construction of the vessel at the Dayang Shipyard. The expected delivery date for Vessel no. 2 will be July 1st 2017. The bareboat charter with Hartmann and the sub-charter contract to SABIC have been amended accordingly.

For Vessel no. 3 it has been agreed, in collaboration with Hartmann/SABIC, that this vessel is cancelled. Ocean Yield has paid USD 16.2 million in pre-delivery instalments to the shipyard, which is secured by bank guarantees. These funds shall be repaid to the Company with 5% interest upon cancellation of the shipbuilding contract. Funds repaid will be re-invested into new projects. The cancellation is not expected to have any material accounting effect in the fourth quarter.

Source: Ocean Yield