Sea Horizon Line, a subsidiary of Hong Kong-based Agritrade Resources Limited, has signed a floating storage tanker service agreement with a petroleum trading company Glencore Singapore, for its recently-acquired VLCC vessel.
Signed for a two-year period, the contract is scheduled to commence on 20 March 2016, giving Glencore Singapore an option to renew the contract upon its expiration.
Under the contract, Glencore Singapore will use the ship for the crude contango business and storage and is obliged to pay a market level hire rate of approximately USD 40,000 per day monthly.
Agritrade Resources Limited expects that the contract will contribute significantly to its revenue and cash flows from the financial year ending 31 March 2017 onwards.
The abovementioned vessel was bought on January 15 by Agritrade from Belgium-headquartered crude oil tanker company Euronav NV for USD 38.4 million.
The 298,412 dwt vessel was built in Japan in 2001.