Shell extends charters for two Tsakos Energy Navigation LR1s

Athens: A European oil major, thought to be Shell, has extended its charters of two panamax tankers owned by NYSE-listed Tsakos Energy Navigation (TEN).

The tankers Selini (74,300 dwt, built 2009) and Salamina (74,300 dwt, built 2009) have had their charters extended by 24 and 30 months respectively, with the option to extend by a further 12 months.

The contracts also include profit sharing provisions, TEN said in a statement today.

The Athens-based owner expects the deals to generate minimum gross revenue of $37.5m, if the contract options are exercised.

“We are pleased to announce these charter renewals at accretive minimum rates to our long-term strategic partners, highlighting the quality of TEN’s fleet and operations,” George Saroglou, CEO of TEN, said today.

Shell previously fixed the two vessels on a two-year period charter, which is due to expire in April 2015. The vessels were both fixed at a daily rate of $14,750 plus a share in profits.

“We remain optimistic of the overall strength of the tanker market and expect significant revenues from profit sharing contracts, like those announced today. These together with income generated by spot trades should positively impact our bottom line going forward,” Saroglou said.

A one-year timecharter rate for LR1 vessels is estimated at between $19,000 to $20,000 per day – but this rate is expected to break through the $20k barrier soon, London-based broker Alibra Shipping told Splash today. Base rates for period charters are typically a little lower than those for timecharters.


Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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