Odfjell confirms four tankers as it agrees LPG JV

Oakhill and Breakwater have agreed to jointly invest $50m for a 50% stake in Odfjell's LPG/E business, in which they and Odfjell will both invest a further $50m for expansion.

Odfjell also announced it has exercised options for four 22,000 cu m LPG/E gas carriers at Nantong Sinopacific for around $200m. The ships are expected to be delivered between September 2016 and June 2017.

The agreement and new confirmation of options builds on Odfjell's current pair of 2008-built 9,000 cu m vessels and quartet of 17,000 cu m ships already under construction at Nantong Sinopacific, which are due for delivery between October 2015 and May 2016

The JV agreement is expected to be completed within the next three months, subject to execution of the shipbuilding contracts and other conditions.

SEB acted as sole financial advisor and Thommessen acted as legal counsel to Odfjell, while Reed Smith LLP acted as legal counsel to Oak Hill.