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