ASRY Chosen by KOTC for 19-ship Repair Deal
One of the largest exclusive ship repair block agreement in Arabian Gulf history, worth over $33 million, signed between ASRY and Kuwait Oil Tanker Company, extends to mid-2017.
ASRY, the ship and rig repair yard in the Arabian Gulf, has signed a ship repair block agreement with Kuwait Oil Tanker Company (KOTC) which includes the exclusive maintenance rights to 19 vessels over the next two and half years. The agreement, is worth more than $33 million, and will see KOTC dock these vessels exclusively at the shipyard.
His Excellency Shaikh Duaij bin Salman Al-Khalifa, Chairman of the Board of Directors of ASRY, said, "[The deal] 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. “
He added, "KOTC has been choosing ASRY’s services for over a decade.”
Shaikh Talal Al-Khaled Al-Ahmad Al-Sabah, Chief Executive Officer of KOTC, commented, “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 Yard are clear. Rolling over experience from one vessel to the next will create exponential rewards and efficiencies over reselecting a yard each time. Also, the doubts and uncertainties that arise from individual bids are eradicated. It’s a win-win situation.”
ASRY's Chief Executive Officer, Nils Kristian Berge disclosed that until mid-2017, KOTC will see 14 oil product tankers, four LPG tankers, and one OSV dock at ASRY for regular drydock maintenance works. Notably, KOTC is also contracting ASRY to include Ballast Water Management Systems installations in the repair scopes, once mandatory.
The inclusion of Ballast Water Treatment system works 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.
Berge pointed out that the agreement was signed in February 2015 and is effective immediately, with the first vessel due at ASRY in February. Eight vessels are due in 2015, nine in 2016, and two in 2017.