Nordic American Tankers’ New Time Charter with Oil Major ‘Cepsa’

(Image Courtesy: Vessel Tracker)

Close on the heels of the expiry of Nordic American Tankers (NAT)’s time charter with oil major ExxonMobil, the company has entered into an agreement with Spanish oil company, Cepsa for chratering 2004 built ‘Nordic Castor’.

While the ship is expected to be delivered in February 2018, the contract would continue upto 15 months. Company sources said, “The agreement would secure a good cash flow. The fact that NAT has only one million barrel suezmax ships allows us to achieve economies of scale.”

NAT, often enters into shorter contracts (typically up to 60 days) for ships serving as storage space for major companies. With the conclusion of this deal, NAT will have 5 of its 33 ships (of which three new builds for delivery in 2018), employed on time charters with major oil companies.

In the autumn of 2017, NAT had shared information about its time charter activities with Shell, BP, ExxonMobil and other major oil companies in the West and in the Far East. The time charter with ExxonMobil for a suezmax recently expired but NAT still has a contract with the former involving lube oil for its suezmax fleet.

Sea News, January 17