Malaysia-based owner and operator of CPP and LPG tankers Orkim Berhad has extended its consecutive voyage charter contracts with Shell Malaysia Trading Sdn. Bhd. and Shell Timur Sdn. Bhd for another six months to Feb 15, 2027.
The company said its subsidiary Orkim Reliance entered into an addendum to each of the existing consecutive voyage charter contracts on August 13 with Shell Malaysia Trading Sdn. Bhd. and Shell Timur Sdn. Bhd.
The contracts were initially entered into for a firm period of one year commencing 16 August 2024 and expiring on August 15, 2025, with options for extension in accordance with the original contractual terms.
The charterers subsequently exercised the extension option, extending the contracts for a further one year, with the current contractual term ending on August 15, 2026.
Under the new deal, the parties have agreed to amend the existing contracts by extending the contractual term for an additional firm period of six months commencing 16 August 2026 and expiring on February 15, 2027.
The contracts may be further extended for three successive periods of six months each, according to Orkim Berhad, exercisable at the charterers’ sole option, subject to the terms and conditions of the existing contracts.
Orkim said the value of the contracts is on ‘cargo-nominations’ basis whereby ‘cargo-nominations’ will be issued at the discretion of the charterers based on the schedule of rates as set forth in the contracts, throughout the duration of the contract.
As such, there is no firm value for the contracts.
