Home News Business Oman Shipping Company adds two tankers to fleet

Oman Shipping Company adds two tankers to fleet

MUSCAT

Oman Shipping Company (OSC) has taken delivery of two MR tankers named ‘Dhank Silver’ and ‘Madha Silver’, making its fleet at 50 vessels.

The two tankers were built on HMD shipyard of Hyundai in Ulsan, South Korea. The two tankers are the seventh and eighth tankers of the Silver Project, which is executed by OSC with Shell International to build 10 medium-sized with capacity of 50,000 DWT each. The new vessels equipped with the latest navigation and safety systems.

The two tankers will be under the technical management of Oman Ship Management Company (OSMC), one of the subsidiaries of OSC. OSMC manages more than 75 per cent of the fleet.

Earlier the company’s CEO Tariq bin Mohammed Al Junaidi had said that the company would take delivery of 5 tankers by the end of this year.

In February this year, the company had taken delivery of its fifth MR2 tanker Muhut Silver and its fourth MR tanker named Mahadah Silver was added to its fleet in January this year.

OSC had posted a profit of $180 million in 2015 and the company was utilizing it for developing and expanding its business.

Al Junaidi said the company invests 20-30 per cent to buy any tanker and the remaining sum would be financed by borrowing from local and international banks.

The company has succeeded in strengthening its position in the maritime transport markets over the past few years.

Recently, OSC has signed an agreement with Shell International to provide it with 10 ships to transport oil derivatives in 2015 and 2016. OSC provides them with five ships so far and the other ships will be provided at the end of the year. Shell rents these ships for up to 10 years in order to operate in the global market.

He also noted that 60 per cent of the company’s tankers are under long-term contracts ranging from 15 to 20 years with large international companies, and reputable local companies, such as Oman LNG and Oman Oil Refineries and Petroleum Industries (Orpic) Oman Trading International (OTI), Salalah Methanol Company, Oman Vale Company, and Sohar Aluminium, while the rest of the company’s tankers are rented out on a daily basis via the spot market.

Al Junaidi said that OSC owns most of the ships, and sometimes hire some of the other vessels and then re-lease to customers.

Oman News Agency