Oman Shipping eyes new business opportunities

FROM P 13 Further, to bolster its chartering business, OSC has invested in a fleet of 10 new mid-range Product Tankers each of about 50,000 DWT, built at South Korea’s Hyundai Mipo Dockyard. Conceived as part of the company’s ‘Project Silver’ initiative, all 10 vessels have been chartered to Shell International for a period of 7 — 10 years. The deal gives OSC “assured business with an international leader in the oil industry, and an opportunity to enhance both quality and its competitive edge through compliance with Shell’s existing standards,” it said.

Another recent investment by OSC pertains to the construction of a state- of-the-art LNG carrier, named Adam LNG. The 163,000 cubic metre capacity vessel has been built at Hyundai Heavy Industries.

With many of its long-term LNG shipping contracts due to expire shortly, Oman Shipping says it is looking to renew its arrangements with exporters of Omani LNG, as well as add further volumes from Oman LNG’s output.

However, a significant challenge it foresees going forward is the escalating wage bill it incurs in the operation of its sizeable fleet. Crewing costs account for a hefty 60 per cent of total operating costs — a challenge the company says must be taken into consideration if it has to remain competitive in the international market.