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Navig8 hatches pool for VLCCs

Singapore-headquartered tanker company Navig8 is delving into yet another sector of the tanker market with plans to launch a VLCC pool later this year.

The company is teaming up with John Fredriksen's VTN Shipping and Muscat-based Oman Shipping to launch the new VL8 Pool, which will initially kick off with three tankers currently under construction for Oman Shipping at Hyundai Heavy Industries's Ulsan yard in South Korea.

The first to arrive will be the 317,000-dwt Qurrayat in November, followed by the 317,000-dwt Buraimi in January 2011 and 317,000-dwt Seeb in July 2011.

Navig8 chief investment and finance officer Modi Mano says the Oman Shipping VLCCs are the first three vessels committed to the pool, adding that "there are others in the pipeline and we expect the pool will reach the necessary critical mass quite quickly".

Navig8 will initially assume the role of manager, although Mano does not rule out the possibility of the company adding its own tonnage. "It is still in the early stages so I cannot comment further on that," he said. Navig8 would likely source VLCC tonnage from the time-charter market.

VTN is already a partner in Navig8's V8 aframax pool and the companies also have other joint partnerships. VTN commercial advisor Jan Scheepers says that although VTN is already a large operator of VLCCs, immediate plans do not call for it to add tonnage to the pool just yet.

"Our role at the moment is to act as commercial manager. There is always the possibility that we may become a tonnage provider at a later point," he told TradeWinds.

Mano describes the three VL8 pool partners as a perfect fit. Navig8 is well versed in running pools and currently operates three products-tanker pools and two chemical-tanker pools. VTN is also a major crude-oil trader, while Oman Shipping is a fast-growing tanker owner in the Middle East, where Navig8 is keen to build further strategic relationships and gain a greater business foothold.

Scheepers adds that contact has been made with other parties that have a keen interest in joining the pool but he does not elaborate further.

Commercial management of the VL8 pool will be conducted out of Singapore, London, Geneva and Connecticut, while operations will be handled out of Singapore and London. The marketing will also take place in Muscat.

Industry sources say Navig8 may soon be launching yet another pool focussing on the long-range one (LR1) segment, a move that would give the company full coverage of all sectors of the products-tanker market.

Jonathan Boonzaier, Singapore
TradeWinds, March 12 2010

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