Odfjell Seals Deal with NCC

Thursday, 16 June 2009

NORWAY'S Odfjell told Fairplay today that it has signed a 50/50 joint venture accord with Saudi Arabia’s National Chemical Carriers. "That's where all the growth in production and exporting is coming from," Odfjell's interim CEO Jan Hammer said about Saudi Arabia. But the tanker operator will not be limited to NCC and the profitable Middle East, he added from his base in Bergen: "We will operate in the global market."

Under the deal, the newly formed, Dubai-based venture NCC Odfjell will operate a fleet of chemical tankers of 40,000dwt and above, for trading in chemicals, vegetable oils and clean petroleum products. Hammer also commented on the “strong and strategic relationship” between Odfjell and NCC, which goes back 20 years. The venture will “serve the expansions in Saudi and other Middle East countries of the exports of liquid chemicals”, he said in a company release.

NCC Odfjell will begin operating early next year with 15 vessels and a total dwt capacity of nearly 660,000 tonnes, which will grow to 31 vessels and a total dwt of nearly 1.4M tonnes over the next three years. Hammer has no concerns that the recession will scupper growth plans. "16 ships are already on order to be delivered, so we know for certain there will be 31," he told Fairplay.

Source: Fairplay