Two midsize LPG carriers sold by Russian shipping major Sovcomflot (SCF Group) have reappeared with a company set up in India barely a year ago.
The 35,000-cbm SCF Tobolsk and SCF Tomsk (both built 2006), believed to have cost about $25m each, mark the first acquisition of Sakura Energy Transport, a Mumbai-based arm of Mitsui OSK Lines (MOL).
Set up in April, Sakura started with two ships — the 302,500-dwt VLCC Kasagisan (built 2006) and 80,200-cbm VLGC carrier Hisui (built 2010) — from its Japanese parent.
As TradeWinds reported last year when unveiling Sakura's debut, the Hisui has been fixed for up to two years by state-owned firm Indian Oil.
Sakura probably lined up similar deals for the SCF Tobolsk and SCF Tomsk, the latter of which has been renamed Green Asha, according to IHS Markit.
MOL set up Sakura to serve growing energy needs in India — one of the world's largest markets for LPG, where it is used by industries and households.
Shipping sources told the local press that MOL's move was an early indication of overseas companies setting up shop in India to capitalise on state help for Indian shipowners carrying crude, LPG, coal and fertiliser cargoes on behalf of government firms.
The government in Delhi approved a subsidy scheme to that effect in July, about three months after Sakura was established.
Under the scheme, domestic shipping companies earn between 10% and 15% on top of agreed charter rates for Indian-flagged vessels.
Sakura has already raised the Indian flag on the Kasagisan and Hisui.
Making room for the newbuildings
On Sovcomflot's side, the sale of the SCF Tobolsk and SCF Tomsk represents a further step in its fleet renewal.
The Moscow-listed owner of more than 150 tankers and gas carriers sold 10 ageing vessels between January and September last year, raising about $133m.
Its sales campaign continued in the fourth quarter. The SCF Tobolsk and SCF Tomsk apart, Sovcomflot is believed to have received $16m in October for its oldest ship — the 159,300-dwt SCF Ural (built 2002). A previous deal for the same ship reported by brokers in August apparently failed.
Some brokers in Athens reported on 11 January that the company's next-oldest tankers — the 115,700-dwt aframaxes Kazan and Krymsk (both built 2003) — have been sold as well, fetching about $11.5m each.
The relatively low price would suggest a scrapping deal rather than a sale for further trading. However, press aides speaking on behalf of Sovcomflot denied the pair had been sold at all.
Nikolay Kolesnikov, Sovcomflot's chief financial officer, said in November that when tankers reach a certain age, there is always an economic decision to make as to whether to put them through another dry docking or usher them to the exit door.
Both the Kazan and Krymsk are to undergo dry-docking by February, according to VesselsValue.
Sovcomflot owns 108 tankers, 14 gas carriers and 11 specialised vessels in the water. The company also has 25 gas carriers and seven tanker newbuildings under construction.
