Shell Commits To Yard In Repair Arrangement

Shell International Trading and Shipping (Stasco), one of the U.K.'s major tanker operators, has signed an Evergreen Alliance Agreement with Sembawang Shipyard, one of Singapore's big three repair yards, committing the repair and maintenance of Shell's Far East fleet for the foreseeable future. The agreement was signed over the Christmas period at Shell Mex by Heng Chiang Gnee, Managing Director of Sembawang Shipyard. The agreement is the first time that Shell has committed itself to one shipyard for general repairs operations, previously repairing ships on a ship-by-ship basis with yards in both the Far East and Middle East. Other major companies to have signed this type of agreement include Chevron with Jurong Shipyard Ltd. and Portugal's Lisnave, which was signed some five years ago. A spokesman for Shell said, "The decision to sign an Evergreen Alliance Agreement with Sembawang followed a detailed mapping of the fleet's trading patterns, the objective being to increase productivity in refitting Shell-owned and managed tankers. We are also looking to sign a similar agreement with a yard in Europe for those ships in the Shell fleet trading in the northern- southern European area. The agreement has been designated 'Evergreen' as there is no definite date of completion, the agreement also being non-exclusive as we have to reserve the right to drydock tankers in the Shell fleet at other yards in case of emergency. "Shipyards in Singapore were contracted but Sembawang, where many of the Shell fleet have been drydocked over recent years, were able to demonstrate the response most aligned with Shell's objectives. It is likely that some six to eight tankers will be due for scheduled drydockings during 1999.

There is one tanker, the 46,851- dwt Hatasia currently under repair at Sembawang, and many of the initiatives in the new alliance, especially involving health, safety and the environment, which is a joint Shell/Sembawang document, will be initiated." Heng Chiang Gnee added: "The shipyard will benefit from lower internal repair cost from economies of scale and operational efficiency from better forward planning of the committed work. We see this as the future direction for shipyards to develop long-term goals and working closely with alliance companies to meet higher quality and service standards. Sembawang is excited by the challenges which this alliance brings." Apart from the Shell contract, Sembawang is currently involved in two FPSO contracts, one involving the outfitting of the newbuilding Northern Endeavour, which will be operated by Australia's Woodside Petroleum, and the former VLCC Proster 11, which is being converted for Monaco's Single Buoy Moorings (SBM). Another example of the trend London's Andrew Weir, which will complete a four-ship deal with France's Arno Dunkerque during February. All four ships were due for mid-term drydocking.

Italian shipbuilding and repair specialist, T. Mariotti, has been awarded a contract to modify the Japanese-built, 17,113-grt Italianregistered passenger RoRo ferry Victory, owned by Italian ferry operator Grimaldi. The contract price has not yet been announced, but it is understood that the total value will be around $50 million. Cammell Laird (Gibraltar) Ltd. has announced that inquiries are still at an all-time-high, with the latest coming from Maersk USA.

Over the Christmas period, 13 ships were undergoing repairs, including Shell's 298,308-dwt VLCC Myrina and P&O Nedlloyd's 47,442-dwt containership Cardigan Bay.

Sweden's Oresundsvarvet has been awarded the contract to repair Stena Line's 38,756-grt Swedish passenger RoRo ferry Stena Scandinavia, which was expected to arrive at the yard during late January 1999.

Norshipco Nabs Argent Marine Contract Argent Marine Services of Yorktown, VA recently signed on with Norfolk Shipbuilding and Drydock Corp. (Norshipco) to reactivate the LNG carrier Southern.

The vessel is scheduled to arrive in the yard this month, and undergo gas trials in October to begin operating under a time charter to Shell Bermuda (Overseas) Ltd

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