Oriental Energy has announced that the company is signing a ship chartering agreement with its controlling shareholder Oriental Petroleum (Yangtze). Under the agreement, Oriental Petroleum will order eight 50,000dwt VLGCs, which will be chartered to Oriental Energy for 10 years upon delivery, scheduled from December 2017 to June 2018.
The monthly rate for each vessel is $800k and Oriental Energy is entitled to acquire the vessels at $15m each upon expiration of the chartering contract.
Oriental Energy said the vessels will further expand the company’s ocean logistics capacity, which will meet the increased demand from its new production projects in Zhangjiagang and Ningbo.
Currently Oriental Energy has another eight VLGCs under construction at CSSC-affiliated Jiangnan Shipyard, which will join the company’s fleet from 2016.