Tally Ho: Oil Major Fleet Renewal Marches On

by Alan Ginsberg

First International, NATS, Knightsbridge, Chevron: when shipping professionals get together (including at the recently held Connecticut Maritime Association Conference), these transactions are invariably lumped together, with the gist of the conversation being “Are these good for the industry/oil majors/independent tanker owners/bankers/investors/sponsors and their rosters of professionals?” – in no particular order, of course. And, after reading Goldman Sachs’ recently issued report on Knightsbridge Tankers in which they estimate the Company’s revenues expressed in daily bareboat charterhire rate terms for each of its five VLCCs at $30,000 in 1998 and $60,000 in 1999, it is clear that we are all going to have plenty to talk about.

In this article, we will continue to compare and contrast the recent Chevron and Knightsbridge transactions with the prior Nordic American Tanker Shipping and First International Petroleum Transport Corp. transactions concluded in 1995 and 1993 respectively. While we have been deluged with articles in the trade press on how these transactions meet the needs of the oil majors, we have yet to read any critical assessment of these transactions.

This is only an excerpt of Tally Ho: Oil Major Fleet Renewal Marches On

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