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One of the largest exclusive ship repair agreements in Middle East history, worth over $33million, has been signed between ASRY and Kuwait Oil Tanker Company (KOTC). The deal, which extends to mid-2017, gives the Bahrain yard exclusive maintenance rights to 19 KOTC vessels over the next two and half years.
His Excellency Shaikh Daij bin Salman Al-Khalifa, chairman of the Board of Directors of ASRY, said, “This is a landmark deal for the region and will allow ASRY to work with KOTC as partners to prepare, plan, and collaborate in advance of each docking to maximise its efficiency and success. Not only is KOTC getting excellent value through advance commitment, but by removing the time-consuming individual tendering process for each ship, we can provide priority dock space, superior scope planning, and faster turnaround times.” He pointed out that KOTC has been using ASRY’s services for over a decade, and that the long-term deal was a validation of the Kuwaiti shipping company’s continued satisfaction with the yard’s work.
Shaikh Talal Al-Khaled Al-Ahmad Al-Sabah, chief executive officer of KOTC, said the deal was a ‘win-win’ situation. He added, “The benefits of an exclusive block agreement with a single yard are clear. Rolling over experience from one vessel to the next will create exponential rewards and efficiencies over re-selecting a yard each time. Also, the doubts and uncertainties that arise from individual bids are eradicated.”
ASRY’s chief executive officer, Nils Kristian Berge, has disclosed that KOTC will dock 14 oil product tankers, 4 LPG tankers, and one OSV in Bahrain for regular maintenance works. In addition KOTC is contracting ASRY to fit Ballast Water Management Systems to these ships, as this technology becomes mandatory.
The agreement is effective immediately and the first ship is due to dock in Bahrain before the end of February. In all ASRY expects to work on 8 KOTC vessels in 2015, nine in 2016, and two in 2017.
