NAT Extends TC for Suezmax Vessel

Nordic American Tankers Limited (NAT) has fixed a one year or more time charter (TC) for one of the NAT suezmax vessels.

NAT's Samsung built suezmax, the Nordic Zenith, has obtained a term contract. The new contract is expected to commence on expiration of the present spot employment and it could last 12 to 15 months.

The contract was entered into with the first-class charterer, Equinor, an energy company headquartered in Norway.  Equinor is a major stocklisted company and one of the largest of its type worldwide.

"Last year we entered into a term contract with the same user for a period of minimum 3 years," said a press release from the Bermuda-based tanker company.

Over the years, NAT has bought several vessels built at Samsung Shipyard in South Korea, including the Nordic Zenith. The vessels of NAT consist of suezmaxes.  The NAT fleet is trading all over the world.  

The contract has a value between USD 9 mill and USD 11 mln depending upon the detailed scheduling of the vessel. The contract is producing positive cashflow and earnings for NAT, cementing the relationship with Equinor.

Major energy and gas companies, including oil traders both in the West and the East, are prioritized customer groups for NAT, said the release.

"Going forward, we sense a strong upward trend for the tanker industry.  NAT is in a positive phase of development," it said.

Historically, all contracts of the tanker industry and of the NAT fleet (now 23 vessels), over a certain length, as a standard need the approval of the technical management arrangement associated with all our contracts. At this time almost all NAT vessels are trading in the spot market.