Agreement to lease two tankers inked.
Oman Shipping Company (OSCOSC) and Sohar Aluminium Company (SAC) this week signed an agreement to lease two tankers to transport aluminium ore from Australia to Sohar port. As per the 15-year lease agreement, the two tankers of OSC will transport 690,000 tonnes of aluminium ore from Australia to Sohar Aluminium in Sohar Industrial Port with effect from the second half of 2011.
The agreement was signed by Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, who acted on his capacity as Chairman of OSCOSC, along with Adel bin Abdullah al Raisi, Chairman of the Executive Committee of OSCOSC
Signing on behalf of Sohar Aluminium was the company's CEO Bros Hole and Dr Hilal bin Abdullah al Hinai, Director-General of Business and Corporate Affairs.
The ceremony was attended by ministers, under-secretaries and executives of the two companies. As per the agreement, OSC will manage and operate two Super Max carriers having a capacity of 56,000 tonnes each. Japan-based Universal Company is building the two vessels, one of which will be delivered in the second half of 2011 and the other in the first half of 2012.
In a statement to reporters, Macki said that co-operation between the two Omani companies affirms sound planning to garner potential economic revenues of implementing the industrial projects in the Sultanate. Macki pointed out that Oman Shipping Company's diversification of its activities in transporting liquid and dry materials will enhance the company's ability to meet the needs of the local and international markets.
Through the stable revenues of the investments, the company will secure more than one source of income, thus enhancing its continuity in maritime transportation market. During the last five years, the state-owned OSC succeeded in building a shipping fleet that comprises 42 tankers of which 23 started operation in the local and international markets, while the other 19 tankers are at different stages of building.
The total capacity of the company's fleet amounts to 2,400,000 tonnes and is expected to reach 8,050,000 tonnes by 2012. Sohar Aluminum started operation in 2008 and the production output from its facility in Sohar is estimated at 360,000 tonnes per annum.
Sohar Aluminum is a joint venture between Oman Oil Company (40 per cent), Abu Dhabi Electricity and Water Authority (40 per cent) and Alcan (20 per cent).