TEN Charters up to Two Suezmax Shuttle Tankers

Tanker spot rates rise as oil price drops

Tsakos Energy Navigation Ltd., a crude, product and LNG tanker operator, reached an agreement for a long-term time charter to a national oil company of a new DP2 suezmax shuttle tanker for delivery in the first quarter of 2017, with an option for a second vessel. This project will make a positive contribution to TEN’s bottom line.

Shuttle tankers are a highly specialized sector, which calls for state of the art vessels specifically designed for oil transport from an offshore field. Typically, such vessels are committed to industrial projects for long periods and function in a complex operational environment.

Nikolas P. Tsakos, President and CEO of TEN commented, “We are pleased to continue our expansion into this niche segment together with a first-class end user. This project is expected to generate significant long term advantages for our company and its shareholders. In the interim, the current spot market rates continue to rise in both the crude and product sectors, as the drop in the price of oil increases demand for our services and enhances our profitability.”

To date, TEN's fleet, including the LNG carrier Maria Energy, nine Aframax crude oil tankers and two LR1 tankers all under construction, consists of 64 double-hull vessels (including Suezmax DP2 option), a mix of crude tankers, product tankers and LNG carriers, totaling 6.72 million dwt. Of these 44 vessels trade in crude, 14 in products, four are shuttle tankers (including Suezmax DP2 option) and two LNG carriers. The average age of the operational fleet is 7.2 years.

All TEN’s newbuildings, except the Maria Energy, are fixed on accretive long term project business. Finance for 10 out of 14 newbuilding vessels has been arranged and discussions for the remainder are in progress.

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