FSO Asia and FSO Africa, two Euronav-International Seaways joint ventures, have signed 10-year extensions to their current contracts. Both 432,000-dwt vessels are currently contracted to Qatar’s North Oil Company (NOC) and operate in the Al-Shaheen oil field
The extension is expected to generate revenues in excess of US$645M for the joint venture (JV). Based on Euronav’s ownership in the JV, the company expects to net more than US$322M in revenue.
Euronav’s CEO Hugo De Stoop said: “This is a positive development for Euronav and these contracts provide the company with a significant source of long-term earnings visibility. These operational units have already provided substantial value to our customer since 2010 and this long-term commitment from NOC reflects the high quality of service provided over that time.”
He continued: “This project illustrates our capability in diversifying our activities beyond the traditional crude oil transportation sector in managing complex, long-term projects focused on generating superior returns on capital.”
FSO Asia and FSO Africa will continue their current contractual service until 21 July 2032 and 21 September 2032. Both custom-made high-specification 3M barrels-capacity units have served in the Al-Shaheen field in the Persian Gulf without interruption since 2010.