Shenzhen-listed Chinese liquefied petroleum gas (LPG) trader Oriental Energy has signed a charter agreement with its controlling shareholder Oriental Petroleum (Yangtze).
Under the agreement, Oriental Energy will charter eight 50,000 dwt VLGCs for 10 years upon their delivery, scheduled from December 2017 to June 2018.
The monthly charter rate for each vessel is expected to be approximately USD0.8 million. They will be built by Oriental Petroleum at a total investment of around USD120 million.
Oriental Energy has also signed a 10-year timecharter contract, with an option to extend for another five years, with Germany-based Hartmann Schiffahrts for five 84,600 m³ VLGCs.
The newbuildings will be delivered between May 2017 and January 2018.
The charter rates are expected to total USD120 million per year.