Oman enters agreement with Japan's MOL

Japanese shipping firm Mitsui O.S.K. Lines (MOL) president Akimitsu Ashida has announced a memorandum of understanding with Oman Shipping S.A.O.C. (OSC), the national shipping company wholly owned by the government of Oman.

The move will aid OSC in responding to increased demand for shipping services as the country's economy grows. OSC chairman and minister of national economy Ahmed bin Abdulnabi Macki and MOL president Akimitsu Ashida signed the agreement at the MOL head office in Tokyo.

The government of Oman continues to develop new petrochemical and gas related projects, generating new demand for shipping services and transport of raw materials. To meet this expanding demand, the memorandum between MOL and OSC covers the dry bulker business, in addition to liquefied natural gas carriers and oil tankers. With this memorandum, MOL will become more deeply involved in Oman's ocean shipping business.

MOL and OSC also agreed to establish a new company that will own a new 110,000 tonne capacity product tanker during the same meeting. Each company will hold a 50% share.

Oman's government established OSC to enhance development of the nation's ocean shipping industry, focusing on transport of exported resources and energy. MOL and OSC established joint companies when they moved into the tanker business. Two companies (one for a VLCC, another for a product tanker) were launched in June 2005, and two more (one product tanker, another for an LPG carrier) were started in June 2006. Since then, MOL has worked closely with OSC, sharing its experience and know-how. The latest joint venture is the fifth tanker project for MOL and OSC.

MOL and OSC jointly own six LNG carriers already in service and five tankers and LPG carriers that have been ordered.

With this tie-up, MOL offers support and advice concerning new vessel construction, ship owner operation, ship management, ship operation, and company management, and will help develop the personnel necessary for Oman's ocean shipping industry and other related operations, including seafarers.

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