New York and Oslo-listed Flex LNG has signed a huge new charter with a “supermajor” worth hundreds of millions of dollars.
The John Fredriksen-controlled company said it has added up to 10 years to existing contracts for the 173,400-cbm Flex Courageous (built 2019) and Flex Resolute (built 2020).
A new firm period will run from 2029 to 2032, with seven more years of options potentially taking the deal through to 2039.
No rate was given.
TradeWinds has previously reported the charterer is oil giant BP
Brokers have said that the UK group had fixed the ships at rates in the high $80,000-per-day region for the first firm three-year period that started in 2022.
At this level, the extra 10 years could be worth $635m.
Maximum spot rates today are $24,800 per day, according to Fearnley Securities, with one-year fixes as much as $51,000.
The charters originally came with two plus two years of options.
The charterer had already declared the first two years of options in January and February this year. This took the term to 2027.
The next two years of options must be declared in the first quarter of 2026.
Flex said: “We find it likely that this extension option also will be utilised given the new firm period from 2029.”
Chief executive Oystein Kalleklev added he was happy to announce “another substantial charter extension” for the vessels.
“Customer satisfaction is paramount to Flex LNG and we therefore focus on delivering not only advanced vessels, but also a superior service level in everything we do from shore to sea,” he said.
“Hence, we are very pleased that our existing charterer has agreed to continue to work together with us for a very long period to come. This extension fits with our communicated strategy of fixing our ships for longer duration at higher rates,” the CEO added.
Fearnley Securities said: “All in all, a highly positive update by Flex LNG, which further solidifies their backlog and strong customer relationships.”
The first ship up for charter renewal does not come open until 2027, assuming options are exercised, the investment bank added.
