OSLO, Norway, Dec. 2, 2005 (PRIMEZONE) -- Shell and Golar are pleased to announce today (2nd December 2005) a five-year agreement for the time charter of three liquefied natural gas carriers.
Shell Tankers (UK) Ltd will charter the 2004 built "Golar Viking" and the new builds "Golar Asia" and Hull 2234, which will be delivered in 2006. Shell International Trading and Shipping Company Ltd (Stasco) will become technical managers of all three vessels.
In line with Shell tradition, the ships will be renamed after sea shells: Gracilis, Grandis and Granosa.
Stasco's commercial shipping manager Gary Smith said: "Today's deal is in line with our strategy of building our portfolio of LNG carriers as well as ensuring we are well placed to take advantage of charter opportunities which will support our growing LNG business more broadly. We manage one of the largest LNG fleets in the world so this deal also enables us leverage our extensive experience of managing LNG vessels".
Golar LNG's Chief Executive Tor-Olav Troim said: "Golar has for a long time worked with the purpose of generating improved return for our shareholders by providing unique flexibility to our customers. This market related contract with Shell will lead to higher utilisation and hence improved earnings from the ships. By combining a deal between a major LNG producer and owner of uncommitted LNG tonnage we create opportunities to take out benefits which would have been difficult to achieve without this venture.
We see this as a first breakthrough in our strategy to provide flexible and innovative deals and are confident that more will follow."
FOR FURTHER INFORMATION Shell Media Relations Bernadette Cunnane +44 (0) 20 7934 2713 Golar LNG: Charlie Peile/Graham Robjohns +44 (0) 20 7517 8600
NOTES TO EDITORS
The agreement involves the following vessels: -- "Golar Viking" (to be renamed Gracilis) - Built Hyundai Heavy Industries, delivered 2004 - Capacity 140,000 m3, membrane (Mk III) - Steam Propulsion -- New Build "Golar Asia" (to be renamed Grandis) - Built DSME, delivery Jan 2006 - Capacity 145,700 m3, membrane (No. 96 E2) - Steam Propulsion -- New-build Hull 2234 (to be named Granosa) - Built DSME, delivery 2006 - Capacity 145,700 m3, membrane (No. 96 E2) - Steam Propulsion
Stasco
Stasco is the principal trading and shipping business within the Shell Group. It comprises a network of companies which are all independent entities, trading in their own right, but also seeking to leverage the opportunities open to a global organisation by sharing information, advice and best practice.
Within Stasco, the Shipping division encompasses an extensive range of professional engineering and nautical expertise. It provides management services for 47 vessels: 23 oil tankers (ranging from 10,000 deadweight product carriers up to 300,000 deadweight very large crude carriers) and 24 liquefied natural gas carriers (not including the new Golar vessels).
For more information about Shell's trading and shipping activities, please see our websites: www.shell.com/trading and www.shell.com/shipping.
Golar LNG
Golar LNG is the largest independent LNG ship owner, and currently owns a fleet of 10 vessels, with three more on order. Golar operates vessels worldwide in well established relationships with BG, Pertamina, CPC, Petronas, Sonatrach, and now Shell. The Company has invested substantially in the future; a fleet of 6 vessels is available to service the changing requirements of the LNG Transportation business under innovative short medium and long term structures. The Company has developed a strategy to utilise its assets and expertise to develop business upstream and downstream from transportation that will enhance earnings and returns to investors. Such business will include Floating Storage and Regasification vessels, and vessels equipped to delivery Electricity directly to the Customer. Further strategic alliances in the LNG Industry, both upstream and downstream are being actively developed.
For more information about Golar's activities, please see our website: www.golargas.com