Nordic American Tankers Ltd announced a new time charter with a major oil company:
In the autumn of 2017, we advised you of our time charter activities with oil companies such as Shell, BP, ExxonMobil and other major oil companies in the West and in the Far East. The ExxonMobil time charter for a suezmax recently expired. However, we have an important contract with them involving lube oil for our suezmax fleet. From time to time we also have shorter contracts (typically up to 60 days) for ships serving as storage space for major companies.
Expanding our time charter portfolio, we would like to inform you that we have entered into a one-year term charter with the major Spanish oil company Cepsa. The ship in question is the 2004 built Nordic Castor. She is expected to be delivered on the time charter late February, subject to a satisfactory inspection in next discharge port. The fact that NAT has only one million barrel suezmax ships allows us to achieve economies of scale. The agreed rate secures a good cash flow. The contract may last for 15 months.
With the conclusion of this deal, we will have 5 our 33 ships (of which three new builds for delivery in 2018), employed on time charters with major oil companies.