Odfjell has entered into an agreement with affiliates of
Breakwater Capital and Oak Hill Advisors (the partners) to
form a LPG and ethylene (LPG/E) shipping joint venture.
Further, Odfjell reports that it has exercised its option for
of four 22,000 cbm
LPG/E gas carriers at Nantong Sinopacific, scheduled for
delivery between September 2016 and June 2017. The contract
price in total is in the region of $200 million.
In the LPG/E gas carrier segment, Odfjell currently owns and
operates two 2008-built 9,000 cbm vessels, has four 17,000
cbm vessels under construction
Sinopacific, scheduled for delivery between October 2015 and
May 2016, and the option for four vessels now being
In accordance with the agreement, Breakwater and Oak Hill
Advisors have jointly agreed to invest approximately $50
million as consideration for a 50.0% equity interest in
Odfjells LPG/E business. Further, Odfjell and
thepPartners have each agreed to commit approximately $50
million to finance the growth of the joint venture.
Completion of the joint venture agreement is subject to
customary conditions for closing including execution of the
shipbuilding contracts related to the vessels. It is expected
that completion will occur within the next three months.
Odfjell and the partners aim through consolidation and
partnerships with other first-class operators to build a
leading LPG/E shipping platform founded upon second-to-none
operational excellence, a modern and eco-friendly fleet and a
long-term market perspective.
"Odfjell is delighted to have Breakwater Capital and Oak Hill
Advisors as its partner in the shipping segment of LPG and
ethylene," said Jan A. Hammer, CEO of Odfjell. "Together, we
will enhance our growth opportunities and broaden our