NYK sells VLCC to joint venture

Japan's Nippon Yusen Kaisha (NYK) has sold its VLCC to its joint venture firm with Thai Oil Public Company. The joint venture firm TOP-NYK MarineOne, established in Singapore in February this year, will then charter out the VLCC Tenyo to Thai Oil under a 10-year contract at the end of March. Thai Oil, a leading petroleum refiner in Thailand, agreed to operate the VLCC in view of increasing demand for crude oil in the country. “Thai Oil's use of Tenyo will help stabilise and strengthen the country's energy transportation system for the mid-to-long term,” NYK said in a statement. Tenyo will primarily be used to shuttle crude oil across the Arabian Sea to Thailand, where it will be refined by Thai Oil. The VLCC is currently bound for the Middle East for its first loading under the contract. Thai Oil, an affiliate of state-run PTT Public Company, plans to own and operate an additional two to three VLCCs or LPG carriers to satisfy PTT's demand for cargo transport.