SFL Expands Its Fleet With Suezmax Acquisition

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The deal also covers the vessels’ long-term time charters to a subsidiary of Koch Industries, says an article published in Ship Technology.

$222.5m Deal

Bermuda-based shipowning and chartering firm SFL has agreed to purchase four modern Suezmax tankers for an aggregate price of $222.5m.

Subsidiary Of Koch Industries

The transaction also covers the vessels’ long-term time charters to a subsidiary of Koch Industries.

The Four Vessels Features

SFL plans to take delivery of the vessels between August and October.

Constructed in 2015 and 2020, the four vessels have advanced eco-design features, including exhaust gas cleaning systems.

Fixed Rated Backlog

The six-year charter period of the vessels will add around $250m to the shipping company’s fixed-rate backlog, stated SFL.

Termination Fee

The charterer has an option to pay a termination fee and end the charters after three years.

Sale Of Tankers

Another option is to develop a sale of one or more of the tankers from year four of the charter period, which also involves a profit share arrangement with SFL.

Expanding Tanker Market

SFL Management CEO Ole Hjertaker said: “We are pleased to further expand our presence in the tanker market at what we believe is an attractive point in the cycle with a historic low order book in the segment.

“The transaction demonstrates our standing in the market as a high-quality provider of transportation services for industry-leading customers, and we continue building our fleet and charter backlog with accretive acquisitions.”

Different Merger

Last November, SFL agreed to acquire four modern Aframax LR2 product tankers for $160m.

The firm also reached long-term time charter agreements for the vessels with a unit of Trafigura.

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Source: Ship Technology 

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