Seachem News

Dow Chemical Company and its subsidiary Union Carbide Corporation have filed lawsuits in the US against Odfjell and three other major parcel chemical tanker carriers, Stolt-Nielsen, Tokyo Marine and JO Tankers in relation to violations of antitrust laws in the US, and claimed damages as a consequence thereof. The lawsuits have not yet been served on Odfjell. On September 29, Odfjell ASA's wholly owned subsidiary Odfjell Seachem AS entered into a voluntary plea agreement with the US Department of Justice. Odfjell Seachem AS agreed to plead guilty to a single-count violation of the US Sherman Antitrust Act for allocating customers and thereby fixing prices on certain contracts of affreightment from 1998 to 2002.

Odfjell has released a statement in hopes of clarifying certain misconceptions reported yesterday. First, the plaintiff in a lawsuit has to prove he has suffered a loss from any illegal action. What is recoverable for the plaintiff is the proven loss. As previously stated, it is our opinion that Odfjell Seachem's customers have not suffered any loss from the antitrust violation. Secondly, if a plaintiff can prove he has suffered a loss, US law sets the maximum compensation to three times the proven loss. Media has grossly incorrect reported this amount to three times the total freight paid. Thirdly, we would like to reiterate that as of today these lawsuits have not been served Odfjell.

Odfjell has entered into an agreement to sell the two sister ships M/T Bow Giovanni (11,290 dwt./built 1987) and M/T Bow Marino (11,289/1988) for an aggregate of USD 12 million. The sales price is slightly above the book value for the two ships. The two ships were acquired in connection with the merger with Seachem in 2000 are have primarily been operating in our regional trade, both in Americas and in Asia. Odfjell expects that the ships will be delivered to their new owner by the end of November 2004.

On October 22, 2007 AVR Van Gansewinkel - Bedrijven, Pernis (Holding) and Odfjell Terminals (Rotterdam) B.V. (OTR), signed a contract for the sale of AVR - Maritiem, Botlek-Rt. to Odfjell. The ownership of AVR - Maritiem will be transferred to Odfjell per January 1, 2008. The new name of the company will be Odfjell Terminals Maritiem B.V. (OTM) as from same date. The parties have agreed that the sales price will be kept confidential. Located next to OTR, one of the largest tankstorage facilities in Europe, OTM will continue to operate as a separate Business Unit within the Odfjell Group and also continue operating the Harbour Receiving Unit (HOI). The close proximity will give OTR the possibility to use and operate the extra berths.

Norway's Odfjell ASA and Greece's Ceres Hellenic Shipping will merge their chemical transport assets to create the world's largest fleet of clean tanker tonnage. The transaction, a combined $360 million investment, will create a combined fleet of 92 ships, of which 49 would be wholly or partly owned, company officials said. Odfjell will issue 4.9 million shares to Ceres, worth about $121 million, in exchange for nine chemical tankers totaling 335,000 dwt and four ships totaling 160,000 dwt to be delivered in 2001-2002. Odfjell will also purchase all the shares in Ceres' chemical tanker company Seachem and remaining Seachem ships in its 23 vessel fleet would be managed by the combined group.