MANAMA: ASRY, the leading Ship and Rig Repair Yard in the Arabian Gulf, has signed a ship repair block agreement with Kuwait Oil Tanker Company (KOTC) which includes the exclusive maintenance rights to 19 vessels over the next two and half years. The agreement, one of the largest signed by a Shipyard in the Arabian Gulf, is worth more than $33 million, and will see KOTC dock these vessels exclusively at the Shipyard.

His Excellency Shaikh Duaij bin Salman Al-Khalifa, Chairman of the Board of Directors of ASRY, expressed his thanks and appreciation to KOTC for their confidence in ASRY, which will provide these vessel repair services to the Kuwaiti company over the next two years. “ASRY has all the capabilities and resources to undertake such task in the manner acceptable to KOTC”, he said, adding, “This is a landmark deal for the region for multiple reasons. It will allow ASRY to work with KOTC as partners to prepare, plan, and collaborate in advance of each docking to maximise its efficiency and success. Not only is KOTC getting excellent value through advance commitment, but by removing the time-consuming individual tendering process for each ship, we can provide priority dock space, superior scope planning, and leading turnaround times.

He further said, “It’s a smart choice for the long-term, not to mention a powerful endorsement of ASRY’s commitment to quality to its clients in general and to KOTC in particular. KOTC has been choosing ASRY’s services for over a decade, and this long-term deal is welcome validation of their continued satisfaction with ASRY’s work.”

Shaikh Talal Al-Khaled Al-Ahmad Al-Sabah, Chief Executive Officer of KOTC, commented on the record deal. “KOTC is committed to having its fleet in the best possible condition at the best possible value, and we were looking for a repair partner to deliver that.

He added: “ASRY’s variety of facilities and excellent track record positions them well to be a long-term partner in ensuring our fleet’s stringent maintenance needs are met for the foreseeable future. The benefits of an exclusive block agreement with a single Yard are clear. Rolling over experience from one vessel to the next will create exponential rewards and efficiencies over re-selecting a Yard each time. Also, the doubts and uncertainties that arise from individual bids are eradicated. It’s a win-win situation.”

ASRY’s Chief Executive Officer, Nils Kristian Berge disclosed that until mid-2017, KOTC will see 14 oil product tankers, 4 LPG tankers, and one OSV dock at ASRY for regular dry-dock maintenance works. Notably, KOTC is also contracting ASRY to include Ballast Water Management Systems installations in the repair scopes, once mandatory.

The inclusion of Ballast Water Treatment system works follows on from fleet-wide feasibility studies carried out by ASRY’s New Construction & Engineering division throughout 2014 on KOTC’s vessels. The schedule for all the dockings over the next two and half years has been set-out in the agreement.

Berge pointed out that the agreement was signed in February 2015 and is effective immediately, with the first vessel due at ASRY in February. Eight vessels are due in 2015, nine in 2016, and two in 2017.