Pertamina books VLCC for up to five years

State-owned oil and gas company PT Pertamina booked a 16-year-old very large crude carrier (VLCC) for as long as five years at a cost of as much as US$48.9 million, to replace capacity the company disposed of earlier this year, the Bloomberg reported on Thursday.

The company signed up the 248,049-deadweight-ton Kolossi at $26,8000 a day starting this month, Oslo-based shipbroker O-J Liabeak said in a note in Oslo. The contract is for four years, with options for two six-month extensions. Cyclops Ships Ltd. owns the Kolossi, according to Clarksons Tanker Register.

Pertamina has the past month sought a VLCC built in 1989 or later to replace one of two new vessels it sold to Frontline Ltd. for a total of $184 million in June, shipbroker such as Galbraith?s of London has said. The oil company, which ordered the tankers in 2002 at $65 million each, said it was profitable to sell the ships and replace them with leased units.

The so-called time-charter contract allows Pertamina to direct the tankers as it sees fit. Pertamina will have to pay for voyage ?related costs such as fuel and port fees. The shipowner is responsible for providing a crew and maintenance.(*)