Odfjell buys five newbuilding chem tankers

JUNE 16, 2017 — Bergen, Norway, headquartered Odfjell SE reports that it has signed a term sheet with Peter Georgiopoulos's Chemical Transportation Group, Inc. whereby Odfjell will acquire the last five of a total newbuilding order of ten 25,000 dwt vessels, each with with 24 stainless steel tanks, from Chinese shipbuilder AVIC Dingheng.

CTG will continue to own five vessels which will be placed in a pool commercially managed by Odfjell Tankers AS. The vessels will together with Odfjell's current fleet of five 25,000 dwt vessels and the five vessels acquired by Odfjell - form a pool of fifteen 25,000 dwt chemical tankers.

The vessels being acquired by Odfjell will be bought at $40 million per vessel on delivery from the shipyard, and are scheduled for delivery from June 2017 through May 2018.

The vessels that will remain under CTG ownership will enter the pool as soon as existing pool agreements and charters expire in the coming 6-12 months.

"This transaction will be in line with our strategy 'the Odfjell Compass' and will complete most of our current tonnage ambitions. It will, together with other recent tonnage initiatives, ensure that Odfjell can continue to offer competitive and efficient service to our customers. At the same time, we are excited about the strategic relationship between CTG and Odfjell, and are pleased to take part in the consolidation of the chemical tanker industry", said Kristian Mørch, CEO of Odfjell SE.

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