ASRY in $33 million ship repair block deal with KOTC

ASRY Chairman Shaikh Duaij and KOTC Chairman Shaik Talal sign record agreement

FEBRUARY 3, 2015 — ASRY, Bahrain, has signed a $33 million ship repair block agreement with Kuwait Oil Tanker Company (KOTC) that includes the exclusive maintenance rights to 19 vessels over the next two and half years.

ASRY CEO Nils Kristian Berge says that between now mid-2017, KOTC will send 14 oil product tankers, 4 LPG tankers, and one OSV to ASRY for regular dry-dock maintenance works.

The agreement is effective immediately, with the first vessel due at ASRY this month. Eight vessels are due in 2015, nine in 2016, and two in 2017.  

KOTC is also contracting ASRY to include Ballast Water Management Systems installations in the repair scopes, once these systems become mandatory.

The inclusion of Ballast Water Treatment system work in the contract follows on from fleet-wide feasibility studies carried out by ASRY’s New Construction & Engineering division throughout 2014 on KOTC’s vessels. The schedule for all the dockings over the next two and half years has been set-out in the agreement.His Excellency Shaikh Duaij bin Salman Al-Khalifa, Chairman of the Board of Directors of ASRY, expressed his thanks and appreciation to KOTC for its confidence in ASRY.

“ASRY has all the capabilities and resources to undertake such task in the manner acceptable to KOTC,” he said. “This is a landmark deal for the region for multiple reasons. It will allow ASRY to work with KOTC as partners to prepare, plan, and collaborate in advance of each docking to maximize its efficiency and success. Not only is KOTC getting excellent value through advance commitment, but by removing the time-consuming individual tendering process for each ship, we can provide priority dock space, superior scope planning, and leading turnaround times.

“KOTC is committed to having its fleet in the best possible condition at the best possible value, and we were looking for a repair partner to deliver that,” said KOTC CEO Shaikh Talal Al-Khaled Al-Ahmad Al-Sabah. “ASRY’s variety of facilities and excellent track record positions them well to be a long-term partner in ensuring our fleet’s stringent maintenance needs are met for the foreseeable future. The benefits of an exclusive block agreement with a single shipyard are clear. Rolling over experience from one vessel to the next will create exponential rewards and efficiencies over re-selecting a yard each time. Also, the doubts and uncertainties that arise from individual bids are eradicated. It’s a win-win situation.”