Pertamina to use Labroy vessels

Pertamina to use Labroy vessels

SINGAPORE (AFP): Singapore-based marine logistics firm Labroy Marine Ltd. announced two agreements worth US$57 million yesterday to charter two tankers to Pertamina.

It is the single largest order from Indonesia for the Labroy group. One agreement was worth $11 million and the other $46 million.

Labroy will charter to Pertamina two tankers with capacities of 1,500 deadweight tons and 17,500 deadweight tons for a period of 10 years plus an option for a further two years, Labroy said in a statement.

The smaller tanker will carry clean oil products and the larger one will carry crude oil. The vessels, whose construction will commence immediately, will be operational in 1998.

"The long-term time charters will provide a steady stream of revenue for the Labroy group," said Tan Boy Tee, Labory's executive chairman. "Diversification into the tanker business is consistent with our growth strategy."

Construction of the two vessels will be financed through internal resources including part of the proceeds from the group's recent public offer, and bank borrowings.

Labroy, which was listed on the mainboard of the Stock Exchange of Singapore in October, owns, operates and charters out 110 tug, barges, general cargo vessels and livestock carriers, and also provides towing and dredging services.