The two companies say the aim of the tie-up, to be called BW Pacific, is to target consolidation in the product tanker market.
Their first move has been to acquire ten modern MR product tankers from Vitol Energy subsidiary Elandra Pte Ltd. However few details about the deal were disclosed
Andreas Sohmen-Pao, chief executive of BW Group said: “BW is pleased to form a joint venture with one of Asia’s leading investment managers and to have PAG as a partner as we expand in the product tanker segment.”
PAG managing partner Chris Gradel commented: “This is a very interesting time in the cycle for the industry and our joint venture with BW presents our investors with a unique opportunity to capture the potential upside in a recovery.
BW Pacific will have a fleet size of 37 tankers made up of 20 MRs and BW Group's 17 LR 1 product tankers. The fleet will be managed by the BW Group.
The 20 MRs include the ten being acquired from Vitol plus a further ten bought from Greek owner Metrostar following the collapse of the sale to failed initial-public-offering (IPO) candidate Diamond S Shipping.
Separately, Nordic Shipholding, which is majority controlled by PAG following a rescue bid last November, said in a statement that it was not party to BW Pacific agreement.
“It is too early to say what the consequences of this agreement will be, if any, for Nordic Shipholding. We will discuss this with PAG in the time to come,” said Nordic chairman Knud Pontoppidan.
Denmark-based Nordic has a fleet of five handysize product tankers and a single LR1 tanker.
