Gulf Navigation to exit VLCC business

A board meeting of Gulf Navigation at the end of last week agreed to recommend the sale of the company’s two VLCC to an extraordinary general meeting.

The move follows the arrest of the VLCC Gulf Sheba in the Port of Rotterdam by creditor bank DNB last week after defaulting on a loan repayment in July.

The six-year old Gulf Sheba is one of two VLCCs along with the Gulf Eyadeh.

“As of now the VLCC segment worldwide is going through a difficult time, and we don’t expect it to turn around in the near term,” Sandeep Kadwe, Gulf Navigation’s managing director was quoted as saying in local press reports. “So to prevent further cash loss from this part of our business we are selling our VLCCs.”

Kadwe said negotiations were ongoing with creditors for the release of the Gulf Sheba.

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