Altera Shuttle tankers signed a deal to sell Petroatlantic, a 100% owned vessel, to a third-party for conversion to an FSO for US$19M, says an article published on Riviera.
Strategic approach
Petroatlantic operated in the North Sea Contract of Affreightment (CoA) pool, and the vessel was delivered to its buyer April 2023.
This move reflects Altera Shuttle’s strategic approach to creating value through prudent asset management, which the company attributed to its ability to understand the energy market and anticipate its dynamic needs.
Debt repayments
The sale of Petroatlantic to a third party for FSO conversion is consistent with Altera Shuttle’s strategy of optimising and rationalising its fleet
2008-built Petroatlantic has a design capacity of 152,000 m3, was built to operate in harsh weather conditions and was optimised to operate in the North Sea CoA pool. The vessel’s sale will generate cash for Altera Shuttle, allowing the company to allocate funds towards growth opportunities such as capital expenditure and debt repayments.
Substantial modifications
The FSO conversion is expected to take approximately 12 months and will require substantial modifications, including installing a turret and mooring system.
This will transform Petroatlantic into an FSO capable of safely storing crude oil from offshore fields. The conversion cost is expected to be around US$60M, which the buyer will bear.
Upon completion, the converted FSO vessel will offer an optimal oil storage solution for offshore productions.
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Source: Riviera
