Greek shipowners strengthen presence in expanding shuttle tanker sector

“The offshore oil market is booming, and demand for shuttle tankers now exceeds supply,” an experienced market source told Riviera. Greek shipowners have seized this opportunity, establishing a strong foothold in this niche sector.

The latest example of this Greek investment wave is the Angelicoussis Group’s acquisition of Altera Infrastructure’s 18-vessel fleet – a move that underscores the Greek commitment to this market and likely signals further expansion.

According to AXSMarine Research data shared with Riviera, Greek owners controlled 23% of the global shuttle tanker fleet as of November 2024. Furthermore, they are behind seven of the 12 vessels currently under construction, accounting for 58% of the total orderbook.

Among Greek owners, Angelicoussis Group, led by Maria Angelicoussis, and Tsakos Energy Navigation (TEN), headed by Nikolas Tsakos, hold the largest market shares. These are followed by lower-profile owners, such as European Product Carriers, IMS Group and Sea Trade Marine.

The Angelicoussis fleet comprises 18 active tankers, with three more under construction. Meanwhile, TEN’s fleet includes eight vessels (four active and four under construction), while the other three players each own two vessels.

Global fleet structure

AXSMarine Research indicates the active shuttle tanker fleet currently numbers 121 vessels, with an orderbook-to-fleet ratio approaching 10%.

Most vessels in operation are between five and 14 years old, accounting for 44% of the fleet. Modern vessels, up to four years old, make up 27%, while older vessels over 15 years represent 29%. This composition suggests significant potential for fleet growth and renewal.

The largest global player remains Knutsen NYK Offshore Tankers (KNOT), a joint venture formed in 2010 between Norway’s Knutsen and Japan’s Nippon Yusen Kaisha. KNOT operates 25 shuttle tankers and has four more on order, according to AXSMarine Research.

Petrobras a key driver

Brazil is a major growth driver in the shuttle tanker sector and a critical factor in Angelicoussis’ recent deal with Altera Infrastructure, a leading provider of these vessels in Brazil, Canada and the North Sea.

“Europe needs oil and refined products from Brazil,” noted market sources, referring to Europe’s efforts to diversify its energy portfolio following sanctions on Russian oil.

In mid-September, Riviera reported Brazilian state-run oil giant Petrobras had issued a tender for eight Suezmax shuttle tankers, to be chartered long-term to Transpetro, Petrobras’s multimodal logistics arm.

Shipbroking and shipbuilding sources told Riviera Greek shipowners have expressed interest in participating, as Transpetro offers 10+5-year charter contracts with relatively attractive rates. 

Favourable fundamentals

KNOT Offshore Partners (KNOP), a US-listed spin-off of KNOT, recently highlighted a favourable medium- to long-term outlook for shuttle tankers.

“We continue to believe that growth of offshore oil production in shuttle tanker-serviced fields across both Brazil and the North Sea is on track to outpace shuttle tanker supply growth throughout the coming years” said KNOP chief executive and chief financial officer Derek Lowe earlier this month. According to Mr Lowe, the key drivers are Brazil’s aggressive expansion of deepwater production capacity and the increasing number of shuttle tankers reaching or exceeding their typical retirement age. He also highlighted that newbuild orders, supported by long-term charters, are a strong indicator of continued market confidence.