The award relates to a six-year bareboat charter of the NAT suezmax Gulf Scandic from 2004 to 2010.
“When the vessel was redelivered to NAT by the charterer in October 2010, it was in very poor technical condition. The vessel had not been technically operated according to sound maintenance practices by the charterer,” NAT said.
Following repairs to the vessel NAT made a claim against Gulf Navigation through London arbitration. The panel awarded NAT $10.2m plus direct costs and interest.
The ability of Gulf Navigation, which is under restructuring, is open to question. “In the maritime press there have been reports regarding the financial position of Gulf Navigation. This award has no significant accounting impact on NAT,” the company noted.
Last month Gulf Navigation sold its two VLCCs Gulf Sheba and Gulf Eyadah to DHT Holdings for $98m. Both vessels were arrested by creditor banks of the UAE-based owner last year.
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