Occidental Petroleum has chartered two VLCCs for 12 months at strong rates, according to market sources, as shipowners take advantage of healthy vessel demand.
Period charter rates for tankers have shown strong gains since March, with traders and energy major rushing to fix vessels for floating storage due to an oversupplied oil market.
US-based Occidental is said to fix the 299,000-dwt Sea Ruby (built 2017) from Pantheon Tankers at $87,500 per day. Oslo-based broker Fearnleys says the prevailing one-year rate is $85,000 per day.
Pantheon ordered the tanker from Hyundai Heavy Industries in 2015 for a reported $97m together with sistership Sea Pearl (built 2017), which is on a period charter to oil major Shell.
The Greek owner has secure front cover for several of its 10 VLCCs. Its 318,000-dwt Astro Chloe (built 2009) was earlier fixed to Trafigura on a three-year charter expiring in May 2022 at $34,000 per day, with an option for another year at $42,500 per day.
Occidental’s second deal is for Sincere Navigation’s 269,000-dwt Maxim (built 2011), constructed by Shanghai Jiangnan Changxin yard.
That tanker is set to earn slightly less than $85,000 per day, some sources said.
Industry databases shows the Maxim is deployed in the Tanker International pool. But it is understood that Tanker International is no longer operating the ship after the Occidental deal.
Occidental, Sincere Navigation and Pantheon did not respond to requests for comments on those charters.
In a third 12-month deal, Clearlake is linked to Marubeni’s 297,000-dwt Mermaid Hope (built 2011). No rate was reported for the Universal-built tanker.
In addition, a large number of shorter period charter deals for VLCCs have been reported this week. Several of them are said to be fixed at $100,000 per day or more.
Some players believe shipowners generally prefer charters of 12 months or longer, though. A six-month charter equals just two long spot voyages.
