Tsakos Energy Navigation Ltd to Build LR1s for Oil Major

By Joseph R. Fonseca
Saturday, August 16, 2014
TEN's LR1

Tsakos Energy Navigation Limited (TEN) announced today the chartering of two of its modern Suezmax tankers with a European oil major for 24 and 12 months respectively with charterers options for another 12 months for each vessel at an accretive base rate with profit sharing. TEN expects minimum gross revenues of approximately $35 million for the full period.

In addition, TEN announces today the commencement of a new partnership with another oil major for the construction and chartering of two LR1 tankers for five years. The option to declare two additional LR1 vessels expires at the end of October 2014.

The vessels will be employed under five year charters at an accretive base rate with 50/50 profit sharing above the base rate between TEN and the oil major. The charters are expected to generate minimum gross revenues of $62 million for the two vessels during the five year period.
 
The two vessels will be financed with equity from the Company's strong cash reserves and bank debt. Delivery is expected during the second half of 2016.

“We are pleased to follow up on our recent announcement with another strategic alliance with one of the largest major oil companies in the world. We continue growing and modernizing our fleet with non speculative orders. At the same time our existing fleet is utilized to maximize the company’s profitability and shareholder value. We believe that the nature of these transactions is a testament of TEN's reputation as a company of choice for major oil companies. We expect the value created by these and other similar projects to be soon reflected in our valuation,” Mr. Nikolas P. Tsakos, President and CEO of TEN commented.

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Tank Coating for Navig8 Chem Carriers

Shipowner Navig8 is progressing the application of Interline9001, a advanced cargo tank coating from AkzoNobel’s International marine product range, on a series

Containers, Crude Drive Q1 Increase at Marseille Fos

A record month for containers and a revival in crude oil imports boosted first quarter throughput at leading French port Marseille Fos to 20.1 million metric tons – up by 1.

Finance

Committee to Consider Coast Guard Authorization Bill

The U.S. Committee on Transportation and Infrastructure, chaired by U.S. Rep. Bill Shuster (R-Pa.), will mark up legislation this week that authorizes United States

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Canada Invests In Port Lambton Rescue Station

Inshore Rescue Boat Station upgraded as part of federal infrastructure commitment   On behalf of the Honorable Gail Shea, Minister of Fisheries and Oceans, Pat Davidson,

Energy

Groups Seek US SEC Probe of Shell Arctic Drilling Risk Disclosures

An environmental group and a law clinic petitioned the U.S. Securities and Exchange Commission to investigate whether Royal Dutch Shell has adequately disclosed

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Oil Rallies Briefly after Iran Seizes Cargo Ship

Oil prices rallied briefly on Tuesday after reports that Iran had seized a cargo vessel, described initially by Iranian and Saudi media as a U.S. ship, raised geopolitical

News

Navy Awards Contract for Passenger Terminal Renovation in Hawaii

Naval Facilities Engineering Command (NAVFAC) Hawaii awarded a $20.5 million firm-fixed-price task order under a multiple award construction contract April 27 to Insight Pacific LLC,

Committee to Consider Coast Guard Authorization Bill

The U.S. Committee on Transportation and Infrastructure, chaired by U.S. Rep. Bill Shuster (R-Pa.), will mark up legislation this week that authorizes United States

Groups Seek US SEC Probe of Shell Arctic Drilling Risk Disclosures

An environmental group and a law clinic petitioned the U.S. Securities and Exchange Commission to investigate whether Royal Dutch Shell has adequately disclosed

Vessels

Tank Coating for Navig8 Chem Carriers

Shipowner Navig8 is progressing the application of Interline9001, a advanced cargo tank coating from AkzoNobel’s International marine product range, on a series

Iran Detains US Cargo Ship in Gulf -Al Arabiya

Saudi-owned Al Arabiya television said an Iranian "force" seized a U.S. cargo ship after opening fire on it in the Gulf on Tuesday and directed it to the Iranian port of Bandar Abbas.

Damen Launches First of Two Ro-Pax Ferries

Eighty-meter ice class Ro-Pax ferry MV Veteran was recently launched by Damen Shipyards Galaţi in Romania, the builder announced today.   The vessel represents the first of a two-vessel contract,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2101 sec (5 req/sec)