NAT acquiring Orion Tanker Pool interest
Nordic American Tankers is taking complete control of the Orion Tanker Pool it set up alongside Frontline in 2011.
Nordic American Tankers (NAT) is acquiring the remaining interest in a firm it established with crude oil transportation firm Frontline a year ago.
It is taking on Frontline's 50 per cent share of Orion Tanker Pool, a company that was set up to manager chartering operations of tanker vessels operated by NAT and Frontline.
Frontline is to leave Orion this year as it wishes to increase the flexibility of its tankers' operations ant Orion will become a wholly-owned subsidiary of NAT on January 1st 2013.
Financial details of the move have not been revealed, but both parties are likely to have carried out lengthy contract negotiations before reaching a deal that is satisfactory for the firms.
Chairman and chief executive of NAT Herbjorn Hansson said he has a "wonderful relationship" with principal Frontline shareholder John Fredriksen, adding he "[expects] to do business with companies in the Fredriksen Group in the future".
NAT operates 20 vessels, with the most recent - a Suezmax model named the Nordic Aurora - purchased in September 2011 for almost $25 million (£15 million).
Posted by Edel Quinn
Source: Nordic American Tankers press release, September 18th.