Marine Log

April 12, 2006

Stolt finds Arab Gulf partner

Stolt-Nielsen S.A. says its wholly-owned subsidiary, Stolt-Nielsen Transportation Group (SNTG), has entered a strategic partnership with Gulf Navigation of Dubai.

Gulf Navigation will acquire two 44,000 deadweight ton (dwt) parcel tankers from ShinA Shipbuilding Co. Ltd. of South Korea, under options formerly held by SNTG. Upon entering service in mid-2009, the ships will join the Stolt Tanker Joint Service (STJS) pool.

SNTG's CEO Otto H. Fritzner said: "The Arabian Gulf is by far the world's fastest growing producer of chemicals. Gulf Navigation is an ambitious, emerging company well positioned to capitalize on this growth opportunity. SNTG's strategic partnership with Gulf Navigation will provide both immediate and longer-term mutual benefits that will enhance our competitive strengths in this key growth market. Expanding the STJS pool with quality partners like Gulf Navigation is also an effective way for SNTG to address its fleet-replacement needs and to ensure continued world-class service to its customers.''

On behalf of Gulf Navigation, Managing Director Ghazi Al-Ibrahim said, "We are pleased to be joining the Stolt Tanker Joint Service. Access to SNTG's global network and premier marketing capabilities will contribute to Gulf Navigation's growth strategy in the global chemical market. By partnering, we aim to fulfill the long term tonnage requirements of the fast growing Arabian Gulf producers.''

SNTG currently has four 44,000 dwt parcel tankers on order from ShinA Shipbuilding, due for delivery in 2008, plus options on two more ships, in addition to the options transferred to Gulf Navigation.

STJS is one of the world's largest chemical-tanker pools, marketing 70 ships to meet the bulk-liquid transportation needs of customers worldwide.

The Gulf Navigation group is a UAE company based in Dubai with subsidiaries and affiliates in the UAE and other GCC countries. Group companies and divisions operate crude, clean petroleum product and chemical tankers. Gulf Navigation shareholders includes leading individuals and institutions from the UAE, Saudi Arabia, Kuwait, Oman and Bahrain.

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