Arbitration award related to purchase options for four VLCCs on charter to Okeanis ECO Tankers
In October 2019, Okeanis ECO Tankers (“Okeanis”) served a notice to exercise options to repurchase four VLCCs (“the Vessels”) that earlier had been bought by Ocean Yield ASA (“Ocean Yield”) and chartered back to Okeanis on long-term charters. The parties disagreed if the conditions for exercising the options had been fulfilled, and the matter was therefore referred to arbitration, the company said in its release.
An arbitration tribunal has decided that Okeanis did not have the right to exercise such options to repurchase the Vessels under the lease agreements.
Ocean Yield ASA is a ship owning company with investments in vessels on long-term charters. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity.