The Kuwait Oil Tanker Company (KOTC) has selected ship and rig repair yard ASRY as the exclusive company who will look after the maintenance rights of 19 vessels for two and a half years.
Worth more than $33 million, the contract is one of the largest exclusive ship repair block agreements in Arabian Gulf history and will see KOTC dock their vessels at the ASRY shipyard.
Shaikh Duaij Salman Al-Khalifa, chairman of the board of directors of ASRY commented on the agreement: "This is a landmark deal for the region for multiple reasons. It 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 leading turnaround times."
CEO of KOTC, Shaikh Talal Al-Khaled Al-Ahmad Al-Sabah 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. It’s a win-win situation.”
The inclusion of Ballast Water Treatment system works follows on from fleet-wide feasibility studies carried out by ASRY’s New Construction & Engineering division throughout 2014 on KOTC’s vessels. The schedule for all the dockings over the next two and half years has been set-out in the agreement.
The first vessel is due at ASRY in February, with eight more in 2015, another nine in 2016, and the two final ships in 2017.