Dubai-based Gulf Energy Maritime (GEM) today took delivery of the second of four vessels it has on order from Korean shipbuilder, Hyundai Heavy Industries, in a deal which has seen the tanker operator double the size of its fleet in only one year of operations.
The new high-specification panamax double-hulled tanker, Gulf Horizon, was completed three months ahead of schedule and will immediately go into service with Glencore (Charters) as part of a three-year deal.
GEM is a joint venture in which Emirates National Oil Company (ENOC) has a 35 per cent share, International Petroleum Investment Company (IPIC) and Oman Oil Company each own 30 per cent, and 5 per cent is held by Thales under the UAE Offset Programme.
“The rapid growth of GEM’s operations – doubling the number of tankers it owns in just twelve months – highlights the company’s determination to become a major player in the tanker industry,” said Hussain Sultan, Group Chief Executive and Board Member, ENOC.
“Already the UAE’s largest commercial tanker operator, GEM will continue to expand and fill an expanding global niche for independent, clean petroleum transportation.”
The company acquired two 64,959 dwt ton four-year old tankers, Gulf Grace and Gulf Progress, from ENOC when it was formed. The first of the vessels Hyundai was commissioned to build, Gulf Pearl, was received by GEM two months ago, and with the delivery of Gulf Horizon, GEM’s fleet now stands at a total of four. The last two tankers are expected to be ready next year.
“Though still a relatively new venture - barely a year old - GEM has already made significant investments in its future,” said Yusr Sultan, Board Member of GEM and Chief Executive Officer, Terminals, Shipping and LPG, ENOC.
“There is every reason to believe that the competitive rates we are currently experiencing are set to continue, and we intend to maximise our available resources to take full advantage of this growing industry.”
Including Gulf Horizon, GEM has ordered nine new vessels and already has long term charter contracts for six of its tankers, securing revenue of up to US$ 350 million.
Speaking during the launch in Korea, Jim Hayer, Chief Operating Officer, GEM, said: “Our aim is to provide environmentally-friendly, high quality, clean petroleum tankers with the latest in doubled-hulled technology, to take us into the future and build our reputation in the market.
“Hyundai Heavy Industries has delivered each of the vessels to date three months ahead of schedule - a true testament to the close co-operation of all parties involved in this venture and the magnificent efforts of Hyundai’s management and workforce.”
In addition to the Korean new-build vessels, GEM will also manage the construction of four small tankers it is having built for ENOC at Dubai Drydocks.
ABOUT ENOC:
Established in 1993 as a wholly-owned company of the Government of Dubai, ENOC aims to promote the interests of its shareholders through the development of further downstream and upstream activities in the oil and gas sector and beyond and to encourage the economic diversification of Dubai and the rest of the UAE.
Leadership and guidance of ENOC are provided by its Chairman, H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry.
ENOC actively participates in an increasingly broad range of business ventures. Its joint ventures with major international companies allow partners to pool their technology, know-how and expertise along with their resources to further their commercial success.
Since its inception, ENOC has been guided by its philosophy of quality and professional management based on modern business concepts for commercial success and sustainable growth. Today it is poised to engineer a new and challenging period of growth and diversity.
ENOC’s mission is to be the reliable Energy Partner of Choice in each sector in which it operates.
ABOUT IPIC:
IPIC is wholly-owned by the Government of Abu Dhabi and was established in 1984 to invest in the hydrocarbons and related sectors outside of Abu Dhabi. IPIC operates on commercial principles with the objective of maximising the long run shareholder value of the company. This is achieved by vigorous participation at the strategic level in every company in IPIC’s portfolio, currently valued at over US $3 billion. Included in IPIC’s portfolio are a controlling stake in Hyundai Oilbank Co. Ltd. (HDO), the Korean refiner/marketer, and a 20% stake in OMV Aktiengesellschaft (OMV), the Austrian National Oil Company. IPIC is committed to aggressive future expansion, by adding further high-quality investments to its portfolio. IPIC brings reassuring ownership and a track record of successful ethical investing to every investment which it undertakes. IPIC is run by an independent Board of Directors, under the Chairmanship of H.H. Sheikh Mansour Bin Zayed Al Nahyan.
