Euronav has announced that its 50% owned joint venture with International Seaways has signed a five-year contract with North Oil Company, the future operator of the Al-Shaheen oil field for the FSO Africa and FSO Asia, in direct continuation of the current contractual service.
The two FSOs have been serving the Al-Shaheen field without interruption since 2010. The new contracts will start at the expiry of the existing contracts with Maersk Oil Qatar in the third quarter of 2017.
Euronav said the new contracts are expected to generate EBITDA in excess of $360m for the jv, which will be debt free from July 2017.
“We are pleased as these contracts provide Euronav with an additional degree of high quality earnings visibility. Combined with our underlying time charter portfolio, this provides Euronav with a solid base of fixed income,” said Paddy Rodgers, CEO of Euronav.
Rodgers said in an interview with Maritime CEO in April that the company has around $600m ready to bolster its 55-strong fleet and has its eyes on cheap secondhand tonnage.