Odfjell, Sinochem ink agreement for four chemical tankers

Odfjell SE announced the signing of a Framework Agreement with Sinochem Shipping Singapore, to receive 4 stainless steel vessels on long-term bareboat charters and to own 8 chemical tankers.

According to the agreement, Odfjell will take 4 of a total newbuilding order of 8 40,900 dwt chemical tankers on long-term bareboat charters, which include purchase options at the end of the charter period.

Sinochem will own 4 vessels and along with the 4 bareboat vessels will consist a pool of 8 40,900 dwt chemical tankers. These vessels will be managed by Odfjell and they will be part of the Odfjell Tankers fleet.

The new ships will be constructed at Hantong Wing Shipyard in China and will incorporate 30 stainless steel tanks.

The first seven vessels were delivered in 2016 and 2017, with the 8th being delivered in December 2017.

The newbuilds will be owned by Odfjell’s fleet and will replace existing tonnage which is currently on charter to Odfjell from other owners.

    “With this structure, we will replace a large part of our maturing chartered-in fleet with more modern and sophisticated tonnage, and in a highly capital efficient way. We are also very pleased with the new relationship with Sinochem and with the trust they place upon us as managers of the pool”, said Kristian Mørch, CEO of Odfjell SE.