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TransAtlantic signs new USD70m contract with Sakhalin Energy.

M2 EQUITYBITES-November 24, 2011-TransAtlantic signs new USD70m contract with Sakhalin Energy(C)2011 M2 COMMUNICATIONS http://www.m2.com

Swedish shipping company Rederi AB TransAtlantic (STO:RABTB) said today that its wholly owned subsidiary, Trans Viking Icebreaking & Offshore AS (TVIO), has agreed to an addendum to the charter party with the Swedish Maritime Administration (SMA).

This addendum gives TVIO an option to end the contract for Vidar Viking, one of the company's three Icebreakers/AHTS-vessels, for the upcoming season in 2012 and for the remaining seasons of the contract.

Also, SMA has agreed to give TVIO the right to cancel the agreement for the option periods from 2015 and onwards for one of the Icebreaking vessels. At the release, TVIO will repay the prepaid charter hire for the relevant season(s).

TVIO has subsequently executed this option and entered into a contract regarding icebreaking services with the Estonian Maritime Administration for the season 2012 for Vidar Viking.

Further, TVIO has agreed to enter into a contract with Sakhalin Energy Investment Company Ltd for a period of two and a half years with additional option(s) to extend the contract by 4x3 months for Vidar Viking.

Under the contract, the vessel will perform icebreaking, supply and anchor handling services with start-up in the summer of 2012. The total gross value of the contract is approximately USD70m.

The vessel will initially sail for six months under Swedish flag and thereafter under dual Cypriotic/Russian flag with a Russian crew. The agreement with Sakhalin Energy is conditional upon approval from the relevant financing banks as well as approval from the Board of Directors in Rederi AB TransAtlantic, the company said.

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Publication:M2 EquityBites (EQB)
Date:Nov 24, 2011
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