Bahri is scrapping one of its oldest VLCCs in India, while another it sold for recycling in October could be destined for a breaker's beach in Bangladesh.
Hisham Nughaimish, Bahri’s vice president for commercial and operations of the Saudi shipowner's oil business, confirmed that the 300,000-dwt Watban (built 1996) has been sold for scrap.
The ship, which is deemed to be at the end of its service life, was sold "as is" in Jeddah for onward delivery to shipbreakers at Alang. Prices mentioned in broking reports this week suggest that it fetched $442 per ldt, or just over $21m.
The Watban was due for a docking survey next month. This, combined with its age, led to the disposal decision.
The sale is reported to include 1,250 tonnes of bunkers, although ship-demolition expert Ed McIlvaney said even this does not account for the high price, which he estimates is $20 to $30 per ldt above what should be expected.
One explanation is that cash buyers of the Watban have secured the vessel without having to guarantee it will be demolished, so it could be resold for further trading.
A similar agreement was reached by the same cash buyers last year for the similar-size VLCC Ramlah (built 1996), also from Bahri.
The Ramlah went for $440 per ldt, but was sold on at a profit to Chinese interests. It continues trading out of the Middle East as the Wu Xian.
In his latest market report, McIlvaney said: “Most certainly, it must be said that if the buyers do not have the same right [to trade], the sale for recycling makes absolutely no sense."
The Watban sale leaves Bahri with three 1990s-built VLCCs in its fleet.
Nughaimish did not give robust confirmation about the fate of these ships except to say that any older tonnage would be sold at the right time, and for the right price.
However, based on Bahri’s past sales, all are likely to be scrapped once their next docking surveys become due.
This means the 300,000-dwt Hawtah (built 1996) could be the next to go. The IHS Ships Register indicates that its docking survey is due in August. Sisterships the Ghawar (built 1996) and Safaniyah (built 1997) will probably continue working until the end of the year, as neither is due for a docking survey until early 2020.
This week, there were further suggestions in Asian tanker circles that the Ramlah would finally be heading for recycling in Bangladesh.
When Bahri sold the ship on an “as is” basis in Jeddah last September, Bangladesh had been reported as its final destination at the time.
Initially its registered owner was listed as Cobb Maritime No 5, but in March it was changed to Gemini Marine No 6. Both are Marshall Islands-registered entities connected to Green Ocean Ship Management, an Indian company that specialises in scrap delivery voyages.
While there have been suggestions by tanker industry sources this week that the Ramlah, currently anchored off the Malaysian coast, would finally be making its last voyage, similar reports have surfaced on several occasions in recent months.
TradeWinds was unable to reach Green Ocean via its listed phone numbers for clarification on the Ramlah’s future.
