Pertamina books VLCC for up to five years

Pertamina books VLCC for up to five years

PT Pertamina, Indonesia's state-owned oil company, booked a 16 year-old very large crude carrier for as long as five years at a cost of as much as $48.9 million, to replace capacity the company disposed of earlier this year.

The Jakarta-based company signed up the 248,049-deadweight-ton Kolossi at $26,800 a day starting this month, Oslo-based shipbroker O-J. Liabeak said in a note in Oslo. The contract is for four years, with options for two six-month extensions. Cyclops Ships Ltd. owns the Kolossi, according to Clarksons Tanker Register.

Pertamina has the past month sought a VLCC built in 1998 or later to replace one of two new vessels it sold to Frontline Ltd. for a total of $184 million in June, shipbroker such as Galbraith's of London has said. The oil company, which ordered the tankers in 2002 at $65 million each, said it was profitable to sell the ships and replace them with leased units.

Frontline, the world's biggest tanker owner by capacity, took delivery of the first vessel a month ago. The second vessel is slated for completion at shipbuilder Hyundai Heavy Industries Co. in September. A VLCC can take on 2 million barrels of crude.

The so-called time-charter contract allows Pertamina to direct the tankers as it sees fit. Pertamina will have to pay for voyage-related costs such as fuel and port fees. The shipowner is responsible for providing a crew and maintenance. -- Bloomberg