Bahri subsidiary buys out Odfjell in Saudi shipping joint venture

10 April 2013 05:50  [Source: ICIS news]

By Pearl Bantillo

Odfjell forms Dubai tanker jv with Saudi ArabiaSINGAPORE (ICIS)--Saudi Arabia’s National Chemical Carriers Ltd (NCC) will buy out its 50:50 joint venture partner – Norwegian logistics firm Odfjell – in the NCC Odfjell Chemical Tankers JLT (NOCT) by June, the Saudi firm’s parent Bahri said late on Tuesday.

This would entail dissolution of 18 ships pool of 40,000 deadweight tonne (dwt) or higher,  according to Bahri, also known as the National Shipping Company of Saudi Arabia, in a filing to the Saudi Stock Exchange.

“It is also agreed that NCC will assume the commercial management of the two 75,000dwt large chemical tankers owned separately by NCC and Odfjell, which are presently under construction,” Bahri said.

NOCT, which was formed in 2009, will be a 100% subsidiary of NCC from 1 June 2013. NCC will acquire Odfjell’s 50% in NOCT at net book value, equivalent to
Saudi Riyal (SR) 1.7m ($453,333) at the end of last year, it said.

NCC currently owns 23 vessels, 11 of which are jointly operated with Odfjell under NOCT, while three are operating under bareboat agreements and nine are under time charter agreements, Bahri said.

The acquisition is in line with NCC’s aim of becoming a full-fledged operator in the chemical tanker market “in order to serve the expansions in petrochemical production and export from the Arabian Gulf region in general and Saudi Arabia in particular,” it said.

NCC is pursuing major fleet expansions and expects to receive its 75,000dwt large chemical tanker by the end of the year. The tanker is currently being built by South Korean Daewoo Shipbuilding & Marine Engineering Co, Bahri said.

Bahri owns 80% of NCC, while the remaining 20% is held by Saudi petrochemical giant SABIC.

($1 = SR3.75)

By: Pearl Bantillo
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