MOL Buys Reliance Ethane Carrier Fleet
Japanese shipping giant Mitsui OSK Lines (MOL) will buy Reliance Industries (RIL) stakes in Singapore-based Reliance Ethane Holding (REHPL) which has a fleet of six very large ethane carriers (VLECs).
RIL has 100% holding in six limited liability companies (LLCs) which own the VLECs. "MOL and a strategic minority investor have signed binding definitive agreements for an investment in the six special purpose limited liability companies each owning a VLEC," said a statement from the Mukesh Ambani-led Indian conglomerate holding.
Transaction closing is subject to regulatory approvals. Post closing special purpose vehicles (SPVs) for LLCs shall be jointly controlled by REHPL and MOL.
P.M.S. Prasad, Executive Director, RIL, said “Given OL is currently the operator of all the six VLECs, investment by MOL will deepen our elationship with them and ensure continued safe and efficient operations of the VLECs. We elcome MOL as a strategic partner into the SPVs as they move beyond the current operator ole to joint owner and operator role in the SPVs”.
Takeshi Hashimoto, Member of the Board, Executive Vice President, MOL said, “This nvestment would enable MOL to add six unique VLECs, which we have been operating for ome time now, as owners to its existing fleet of over 850 vessels which include LNG carrier, ther tankers, dry bulkers, car carriers, ferries and coastal RoRo ships and cruise ships."
Takeshi added: "We also have container ships which are chartered by ONE. MOL has detailed knowledge about these assets having supervised the construction and delivery of the six VLECs and subsequently operating them since their delivery. We are therefore happy and look forward to use this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance”.
MOL owns and operates a fleet size of over 850 vessels and is also the largest LNG carrier in the world. MOL’s fleet also includes other tankers, dry bulkers, car carriers, ferries and coastal RoRo ships and cruise ships. MOL also own container ships which are chartered by ONE.
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of $ 66.1 billion, cash profit of $ 8.6 billion for the year ended March 31, 2018. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.