Euronav said that its joint venture with International Seaways extended charters for two floating storage and offtake units that have served an oil field offshore since 2010.
The 442,000-dwt FSO Africa and FSO Asia (both built 2002) received a five-year charter extension from North Oil Company, the future operator of the Al-Shaheen oil field. North Oil is a joint venture of Qatar Petroleum and France's Total.
The FSOs each have 3 million barrels capacity and have been serving the Al-Shaheen field since 2010. The existing charters will remain in force until expiry in the third quarter of 2017. Maersk Oil was the field's previous operator.
Euronav says the FSOs will generate over $360m in total revenue over the five-year extension, excluding reimbursement for agreed operating expenses which will be dealt with on an open book basis.
Stifel analyst Ben Nolan says estimates that the floating storage joint venture contributes about $36m in annual earnings to Euronav.
