Oman Shipping sets up new VLCC chartering service

By Curious

Oman Shipping Company (OSC), one of the biggest ship owners in the Middle East and North Africa (Mena) region, has set up a new commercial chartering desk offering its very large crude carrier (VLCCs) to major traders and charterers covering VLCC routes worldwide.

OSC has a diversified and young fleet of 50 vessels. It owns 16 VLCCs within the fleet out of which the company is now commercially managing 15 VLCCs through its subsidiary Oman Charter Company (OCC), said a statement from the company.

Oman Shipping sets up new VLCC chartering service

The move follows an announcement in December 2016 which saw OSC withdrawing 15 VLCCs from the VL8 pool based in Singapore, it said.

The VLCCs were being outsourced to be run commercially through the pool. After setting up its own crude oil chartering desk, OCC, OSC has taken over full commercial control of the VLCCs, it added.

As part of this strategy, OCC signed a Contract of Affreightment with Shell International Eastern Trading Company, a Shell subsidiary, for a period of three years, which gives a substantial cargo base for the 15 VLCCs.

Debasish Mohapatra, OSC general manager commercial, tankers and gas, said: “The new chartering desk will enable us to harness the full potential of our relatively young VLCC fleet, serving clients better.”

“We are targeting oil majors and crude oil traders worldwide with our new chartering service,” he said.

“Our VLCCs are modern vessels with high specifications and good safety records. The fleet is economical in its fuel consumptions and therefore highly attractive to the charterers, traders and oil majors. A total of 12 VLCCs were built in Korean shipyards and a further three in Japan using state-of-the-art technology,” he added.

“The fleet is being technically managed entirely in-house and in-line with the international safety standards offering totally safe and secure shipment to our clients,” Mohapatra said.

“Our contract of affreightment with Shell Eastern Trading International provides our chartering desk with an initial cargo base for the 15 VLCCs and demonstrates how we can provide world-class shipping solutions to major operators,” he added.

OSC controls a fleet of 50 vessels including 43 owned, out of which 33 vessels are tankers. OSC from its inception is dedicated to serve its clients with efficient and safe shipping solutions in all segments like LNG, crude, clean products and chemicals. Its clients in these sectors include Shell, Itochu, Mitsubishi, Oman LNG, Exxon, BP, ORPIC, OTI, said a statement.

Tariq Al Junaidi, CEO of OSC, said that bringing the commercial management of the VLCC fleet in-house will help meet ambitious growth targets.

“Our mission is to deliver intelligent global transport solutions that directly benefit Oman’s national economy,” he said. “As a company, we take great pride in delivering reliable, safe, environmentally responsible and economically sustainable services. This is underpinned by international quality and performance standards.”

Al Junaidi said: “Bringing the management of our VLCC fleet in-house gives us greater autonomy, and ultimately enables us to direct the operation with greater control.”

“The VLCC fleet is set to play a large role in the future growth of the company. We are satisfied that vessels are now within the correct chartering structure to maximise their potential,” he concluded.

Source: TradeArabia News Service