Euronav NV announced that the joint venture with International Seaways (INSW) has signed a contract for five years with North Oil Company (NOC) for the FSO Africa and FSO Asia, in direct continuation of the current contractual service.
The new contracts for these custom-made 3 million barrels capacity units, that have been serving the Al-Shaheen field without interruption since 2010, will have a duration of five years, starting at the expiry of the existing contracts with Maersk Oil Qatar. The existing contracts will remain in force until expiry in the third quarter of 2017.
The FSO Africa and FSO Asia floating storage platforms are both high specification and long duration assets with a potential trading life to 2032.
According to Euronav, the new contracts are expected over their full duration to generate EBITDA (earnings before interest, taxes, depreciation and amortization) in excess of USD 360 million for the joint ventures. In addition, the joint venture with International Seaways will be debt free from July 2017 providing further optionality to create value.
